{"id":2484,"date":"2023-03-15T12:30:18","date_gmt":"2023-03-15T16:30:18","guid":{"rendered":"https:\/\/seci.wpenginepowered.com\/?p=2484"},"modified":"2023-03-15T12:30:23","modified_gmt":"2023-03-15T16:30:23","slug":"a-proxy-area-for-care-perks-reporting","status":"publish","type":"post","link":"https:\/\/seciblog.pli.edu\/index.php\/a-proxy-area-for-care-perks-reporting\/","title":{"rendered":"A Proxy Area for Care\u00a0\u2013\u00a0Perks Reporting!"},"content":{"rendered":"\n\n<p style=\"font-weight: 400;\">We have <a href=\"https:\/\/seciblog.pli.edu\/perks-enforcement-cases\/\">blogged<\/a> several times about the SEC Enforcement Division\u2019s frequent perks enforcement actions and the messages they send.\u00a0 Among the companies where the SEC has found problems identifying and disclosing perks are:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Gulfport \u2013 February 2021<\/li>\n<li>ProPetro Holding Corp \u2013 November 2021<\/li>\n<li>National Beverage \u2013 August 2021<\/li>\n<li>Hilton \u2013 September 2020<\/li>\n<li>ARGO Group Holdings \u2013 June 2020<\/li>\n<li>Sito Mobile \u2013August 2019<\/li>\n<li>Dow \u2013 July 2018<\/li>\n<li>Energy XXI \u2013 July 2018<\/li>\n<li>Provectus \u2013 December 2017<\/li>\n<li>MusclePharm \u2013 September 2015<\/li>\n<li>Tyson Foods \u2013 April 2005<\/li>\n<li>GE \u00ad\u2013 September 2004<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"font-weight: 400;\">On March 2, 2023, the Division <a href=\"https:\/\/www.sec.gov\/news\/press-release\/2023-43\">announced<\/a> its latest perks-related cases against <a href=\"https:\/\/www.sec.gov\/litigation\/admin\/2023\/33-11162.pdf\">The Greenbrier Companies<\/a>and its founder and former CEO, <a href=\"https:\/\/www.sec.gov\/litigation\/admin\/2023\/33-11161.pdf\">William A. Furman<\/a>.\u00a0 Both cases dealt with failure to disclose perks of approximately $329,000 and failure to disclose related-party transactions in which Greenbrier paid Furman for the use of his private airplane.\u00a0 According to the <a href=\"https:\/\/www.sec.gov\/litigation\/admin\/2023\/33-11162.pdf\">Greenbrier Order, the<\/a> company lacked appropriate internal controls to identify and record perks and related-party transactions.\u00a0 As a result, both the company\u2019s proxy statements and Form 10-K reports contained material misstatements.<\/p>\n<p style=\"font-weight: 400;\">In the <a href=\"https:\/\/www.sec.gov\/litigation\/admin\/2023\/33-11162.pdf\">Greenbrier Order,<\/a> the SEC noted that the company undertook significant remedial actions.\u00a0 Greenbrier and Furman both entered into cease-and-desist orders.\u00a0 The company paid a $1,000,000 penalty and Furman paid a $100,000 penalty.<\/p>\n<p style=\"font-weight: 400;\"><strong>Perks identification and disclosure are clearly areas where financial reporting management and disclosure committees should review company policies, ensure that appropriate controls are designed and operating effectively, and carefully review related disclosures.<\/strong><\/p>\n<p style=\"font-weight: 400;\">As always, your thoughts and comments are welcome!<\/p>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We have blogged several times about the SEC Enforcement Division\u2019s frequent perks enforcement actions and the messages they send.\u00a0 Among the companies where the SEC has found problems identifying and disclosing perks are: Gulfport \u2013 February 2021 ProPetro Holding Corp \u2013 November 2021 National Beverage \u2013 August 2021 Hilton \u2013 September 2020 ARGO Group Holdings &hellip; <a href=\"https:\/\/seciblog.pli.edu\/index.php\/a-proxy-area-for-care-perks-reporting\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">A Proxy Area for Care\u00a0\u2013\u00a0Perks Reporting!<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[143,242],"tags":[],"coauthors":[154],"class_list":["post-2484","post","type-post","status-publish","format-standard","hentry","category-hot-topic","category-reporting"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/2484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=2484"}],"version-history":[{"count":0,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/2484\/revisions"}],"wp:attachment":[{"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=2484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=2484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=2484"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/seciblog.pli.edu\/index.php\/wp-json\/wp\/v2\/coauthors?post=2484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}