Express, Inc. settles SEC charges for undisclosed executive compensation

Investing.com -- The Securities and Exchange Commission (SEC) has announced that it has settled charges with Ohio-based fashion retailer, Express, Inc. The company was accused of failing to disclose nearly $1 million in executive compensation paid to its former CEO.

The SEC's order reveals that Express did not reveal $979,269 worth of perks and personal benefits given to its CEO in the definitive proxy statements for the fiscal years 2019, 2020, and 2021. These benefits included specific expenses related to the CEO's authorized use of chartered aircraft for personal reasons. This resulted in an understatement of the "All Other Compensation" section of the CEO's compensation by an average of 94 percent over the three fiscal years.

The company, which filed for Chapter 11 bankruptcy earlier this year, was found to have 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.

Despite these violations, the SEC decided not to impose a civil penalty on Express. This decision was based on the company's self-reporting of the issue, its cooperation with the SEC's investigation, and actions taken to rectify the issue.

Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, emphasized that public companies need to fulfill their disclosure obligations regarding executive compensation, including perks and personal benefits. This is so that investors can make informed investment decisions.

Express has agreed to a cease-and-desist order, without admitting or denying the SEC’s findings. The SEC's investigation was carried out in the Chicago Regional Office by Ruta G. Dudenas and Ann Tushaus, and was supervised by Amy S. Cotter.

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Source: Investing.com