SEC Charges Express for Failing to Disclose $1M in Perks to Former CEO
SEC recently announced an enforcement action against Express, a well-known retail company, for failing to disclose over $1 million in perks provided to its former CEO. This information was a requirement by federal securities laws.
Despite this failure, the SEC did not impose a financial penalty on Express. Instead, the company agreed to cease and desist from violating the particular provision of the federal securities laws that was the cause of concern.
The SEC’s order found that Express provided its former CEO with substantial perks from 2012 to 2020. These perks included personal travel expenses, significant personal use of corporate aircraft, and other benefits. However, Express did not properly disclose these perks in its filings with the SEC.
Express also agreed to hire an independent consultant to review its policies, procedures, and controls related to executive compensation disclosures. This move aims to ensure future compliance with the relevant securities laws.
Express took positive steps by cooperating with the SEC’s investigation and promptly remedying the disclosure lapses. This cooperation and the company’s corrective actions contributed to the SEC’s decision not to impose a monetary penalty.
This case serves as a reminder to all companies of the importance of accurately disclosing executive compensation and perks. It highlights the need for transparency and compliance with federal securities laws to protect investors and maintain fair and efficient markets.
