September 25, 2012
New Item for Summary Compensation Table: Bribes
– Broc Romanek, CompensationStandards.com
The facts alleged in this press release – and complaint – from the SEC against a former executive and director of Systemax is staggering. Greed, greed, greed. And a disclosure violation based on bribes. Here is more from Steven Kittrell’s “Just Compensation” blog:
In the most unusual executive compensation disclosure development of the year, the SEC settled with an executive for a violation of the proxy disclosure rules for his hiding the receipt of bribes. The SEC asserted that the executive’s failure to ensure that the bribes (and his thefts of company property) were disclosed as “all other compensation” in the proxy statement was a violation of the proxy rules. It should be noted that this was only one of seven counts for securities laws violations, including 10b-5 allegations. The executive settled, including agreeing to a fine and a permanent bar from employment as an officer of a public company.
We can all hope never to have to use the knowledge that bribes and stolen property received by a fired executive should be disclosed on the summary compensation table.
And here’s a blog about this case from David Smyth’s “Cady Bar the Door”…