SEC, Tyson agree on $1.5 million settlement
The SEC has accepted the company’s $1.5 million offer and, after further negotiations, has agreed to accept a penalty of $700,000 from Mr. Don Tyson.
02/05/05 The Securities and Exchange Commission (SEC) has given final approval to a settlement resolving the SEC’s investigation into the disclosure of certain executive perquisites by Tyson Foods, Inc.
The SEC’s order resolves allegations that the company's proxy statements for fiscal years 1997 through 2003 failed to comply with SEC regulations on the disclosure and description of perquisites totaling approximately $1.7 million provided to former Senior Chairman Don Tyson. The order also resolves allegations that the company had not maintained an adequate system of internal controls over the personal use of company assets and the disclosure of perquisites and personal benefits.
Both the company and Mr. Tyson consented to the entry of the order without admitting or denying wrongdoing. The SEC’s order in this matter does not involve any other Tyson executives, employees or board members.
As previously reported, Tyson Foods had offered to pay the SEC a civil penalty of $1.5 million while Mr. Tyson had proposed to pay a civil penalty of $200,000. The SEC has accepted the company’s offer and, after further negotiations, has agreed to accept a penalty of $700,000 from Mr. Tyson.
As previously disclosed, independent members of Tyson’s Board of Directors conducted their own review of the matter. Don Tyson voluntarily paid $1.516 million to the company for certain items the independent board members identified.
Don Tyson served as the company’s CEO and chairman from 1967 to 1991, as its chairman from 1991 to 1995, and as its senior chairman from 1995 until his retirement in 2001. During his tenure, the company’s revenue increased from $51 million to more than $10 billion. In his retirement, Mr. Tyson has continued to serve as a consultant to the company and as a member of its board of directors.
“We value Don Tyson’s leadership and his continued service to the company he helped build,” said Jo Ann R. Smith, chair of the Compensation Committee for the Tyson Board. “Our committee will continue its efforts to ensure Tyson’s benefit plans and compensation practices are appropriately administered.”
