Company Settles Charges Of Failing To Disclose CEO's Perks

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
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.
United States Corporate/Commercial Law

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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More