SEC Charges Express, Inc. with Failing to Disclose Nearly $1 Million in Perks Provided to Former CEO
The SEC settled charges against Express, Inc. for failing to disclose $979,269 in executive perks to its former CEO, resulting in a cease-and-desist order.
Express, Inc. failed to disclose $979,269 in personal benefits, including chartered aircraft use, provided to its former CEO between fiscal years 2019 and 2021. These omissions caused the company to understate the 'All Other Compensation' portion of the CEO's pay by an average of 94 percent. The company violated several provisions of the Securities Exchange Act of 1934 and agreed to a cease-and-desist order.
The Securities and Exchange Commission announced settled charges against the Ohio-based fashion retailer Express, Inc. for failing to disclose executive compensation perks. For fiscal years 2019, 2020, and 2021, the company failed to report $979,269 in personal benefits provided to its former CEO, including expenses for the personal use of chartered aircraft. This failure resulted in the 'All Other Compensation' figure being understated by an average of 94 percent over the three-year period. The SEC found that Express violated Sections 13(a) and 14(a) of the Securities Exchange Act of 1934 along with several related rules. Although the company filed for Chapter 11 bankruptcy earlier this year, the SEC declined to impose a civil penalty because of Express's self-reporting, cooperation, and remedial efforts. Without admitting or denying the findings, Express agreed to a cease-and-desist order.
Exhibits & Attached Documents (1)
Extracted insights
- $979K $979,269 $100K–$1M
- company against ohio-based express, inc.
- person Sanjay Wadhwa
- company the company
- agency the sec’s investigation
- agency the sec’s order
- agency the securities and exchange commission
- The Securities and Exchange Commission Announced Settled Charges Against Ohio-based Express, Inc.
- Express Failed To Disclose $979,269 Worth Of Perks And Personal Benefits Provided To Its Ceo
- The Company Understated The All Other Compensation Portion Of Its Ceo’s Compensation By An Average Of 94 Percent Over The Three Fiscal Years
- Sanjay Wadhwa Said Public Companies Have A Duty To Comply With Their Disclosure Obligations Regarding Executive Compensation, Including Perks And Personal Benefits, So That Investors Can Make Educated Investment Decisions
- The Sec’s Order Finds Express Violated Sections 13(a) And 14(a) Of The Securities Exchange Act Of 1934 And Rules 12b-20, 13a-1, 13a-15(a), 14a-3, And 14a-9 Thereunder
- Express Agreed To A Cease-And-Desist Order
- The Sec’s Investigation Was Conducted In The Chicago Regional Office By Ruta G. Dudenas And Ann Tushaus, And Supervised By Amy S. Cotter
The Securities and Exchange Commission today announced settled charges against Ohio-based Express, Inc., a multi-brand American fashion retailer, for failing to disclose executive compensation it paid to its now former CEO. According to the SEC’s order, in definitive proxy statements for fiscal years 2019, 2020, and 2021, Express failed to disclose $979,269 worth of perks and personal benefits provided to its CEO, including certain expenses associated with the CEO’s authorized use of chartered aircraft for personal purposes. As a result, the company, which filed for Chapter 11 bankruptcy earlier this year, understated the “All Other Compensation” portion of its CEO’s compensation by an average of 94 percent over the three fiscal years. “Public companies have a duty to comply with their disclosure obligations regarding executive compensation, including perks and personal benefits, so that investors can make educated investment decisions,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Here, although Express fell short in carrying out its obligation, the Commission declined to impose a civil penalty based, in part, on the company’s self-report, cooperation with the staff’s investigation, and remedial efforts.” The SEC’s order finds that Express violated Sections 13(a) and 14(a) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-15(a), 14a-3, and 14a-9 thereunder. Without admitting or denying the SEC’s findings, Express agreed to a cease-and-desist order. The SEC’s investigation was conducted in the Chicago Regional Office by Ruta G. Dudenas and Ann Tushaus, and supervised by Amy S. Cotter.
The Securities and Exchange Commission today announced settled charges against Ohio-based Express, Inc., a multi-brand American fashion retailer, for failing to disclose executive compensation it paid to its now former CEO. According to the SEC’s order, in definitive proxy statements for fiscal years 2019, 2020, and 2021, Express failed to disclose $979,269 worth of perks and personal benefits provided to its CEO, including certain expenses associated with the CEO’s authorized use of chartered aircraft for personal purposes. As a result, the company, which filed for Chapter 11 bankruptcy earlier this year, understated the “All Other Compensation” portion of its CEO’s compensation by an average of 94 percent over the three fiscal years. “Public companies have a duty to comply with their disclosure obligations regarding executive compensation, including perks and personal benefits, so that investors can make educated investment decisions,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Here, although Express fell short in carrying out its obligation, the Commission declined to impose a civil penalty based, in part, on the company’s self-report, cooperation with the staff’s investigation, and remedial efforts.” The SEC’s order finds that Express violated Sections 13(a) and 14(a) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-15(a), 14a-3, and 14a-9 thereunder. Without admitting or denying the SEC’s findings, Express agreed to a cease-and-desist order. The SEC’s investigation was conducted in the Chicago Regional Office by Ruta G. Dudenas and Ann Tushaus, and supervised by Amy S. Cotter.