Friday, April 29, 2005

Tyson and SEC Settle

The SEC announced here that it settled with Tyson Foods and Don Tyson with an agreement of penalties to be paid by Tyson Foods in the amount of 1.5 million and Don Tyson to pay the amount of $700,000. 

According to the SEC Press release,

"The SEC charged that in proxy statements filed with the Commission from 1997 to 2003, Tyson Foods made misleading disclosures of perquisites and personal benefits provided to Don Tyson both prior to and after his retirement as senior chairman in October 2001. The SEC also charged the company with failing to maintain adequate internal controls over Don Tyson's personal use of company assets. Don Tyson was separately charged in the administrative proceeding with causing the company's violations and in the complaint with aiding and abetting the company's violations. "

The SEC Order appears to be very detailed, as the press release lists specific "perquisites [that] had not been raised with or authorized by the company's compensation committee."  Some of the items listed on the press release are as follows:

  • $84,000 in lawn maintenance at five different homes where he and his family and friends lived;
  • $46,110 to maintain nine automobiles owned and used by Don Tyson and his family and friends;
  • $36,554 in telephone services for him and his family and friends;

(esp)

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