TheCorporateCounsel.net

December 21, 2004

Enforcement Brings Another Comp Disclosure Case

Yesterday, the SEC settled enforcement proceedings against The Walt Disney Company for failing to disclose certain related party transactions between Disney and its directors, and for failing to disclose certain compensation paid to a Disney director.

In particular, Disney failed to disclose that the company employed three children of its directors, who received annual compensation ranging from $60k to more than $150k. In addition, Disney did not disclose that the spouse of another director was employed by a subsidiary 50% owned by Disney and received compensation in excess of one million dollars annually. Further, Disney failed to disclose that it made regular payments to a corporation owned by a Disney director that provided air transportation to that director for Disney-related business purposes. Finally, Disney failed to disclose that it provided office space, secretarial services, a leased car, and a driver to another Disney director, services valued by the company at over $200k annually.

Learn what you need to know about director comp disclosures – including 8-K disclosures – during the January 13th webcast on CompensationStandards.com – “What NOW Needs to Be Disclosed in the Proxy Statement.”

SEC Staffer Implicated in DOJ Bribing Probe

A number of media reports state that the Justice Department is investigating a member of the SEC’s Office of Compliance, Inspections and Examinations for a bribery allegation. Apparently, this was disclosed in a report by the SEC’s inspector general: “An office investigation developed evidence that a staff member had solicited a gratuity from an officer of a firm registered with the commission, after the staff member had conducted an examination of the firm and closed the examination without any findings.” OCIE conducts on-site investigations of brokers, investment companies and investment advisors.

My burning question is how much could a SEC staffer possibly ask for in a bribe(that is worth burning a career)?