Memo to boards: You pay them plenty. Let them pay for their own plane rides and credit card purchases.
Last week, the SEC settled charges with Texas oilfield company ProPetro Holding Corp. and its former CEO for not properly disclosing hundreds of thousands of dollars’ worth of perquisites, including personal use of the company airplane and misuse of a corporate credit card.
This latest resolution follows a string of similar settlements made with companies and executives in the last several years, including with Argo Group International Holdings, Dow Chemical, Gulfport Energy Corporation, Hilton Worldwide Holdings and National Beverage Corp.
Given the recent spotlight that the SEC has placed on perk disclosures, compensation committees need to ask management for updated reports on executive perquisites and ensure that the proper internal controls and data gathering mechanisms are in place to monitor these benefits, sources said.Agenda – SEC Nabs Another Company for Failure to Disclose Perks