A chemical product manufacturer agreed to pay $1.75 million to settle SEC charges of failing to properly disclose in proxy statements certain "other compensation" provided to its CEO.
According to the SEC, the company failed to disclose that its CEO had received perquisites including the "personal use of the [company's] aircraft and other expenses." The SEC found that the company did not adequately train its employees to identify and report executive perquisites on annual proxy statements.
In addition to paying the civil monetary penalty, the company also agreed to retain an independent consultant to review the company's handling of perquisite disclosures, and to implement a consultant's recommendations on improvements to policies and procedures.
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