Express failed to disclose nearly $1 million in perks to former CEO, SEC says
The U.S. Securities and Exchange Commission said Tuesday that Express failed to disclose nearly $1 million in executive benefits to the clothing retailer’s former chief executive and said it had resolved the allegations against the company, which it had earlier this year Bankruptcy.
The agency did not name the former CEO but said the proxy statements cover fiscal years 2019, 2020 and 2021, the period during which Tim Baxter served as CEO. The Macy’s veteran joined Express in June 2019 and left less than four years later.
“Express failed to disclose $979,269 worth of perks and personal benefits provided to its CEO, including certain fees related to the CEO’s authorized use of charter aircraft for personal purposes,” the SEC said.
As a result, the company applied Chapter 11 Bankruptcy In April, the company understated CEO pay by 94% over three fiscal years, according to the agency.
Sanjay Wadhwa, acting director of the SEC’s Enforcement Division, said public companies have a responsibility to comply with disclosure obligations so that “investors can make informed investment decisions.” Wadhwa noted that despite this, the commission did not impose a civil penalty due to the company’s self-reporting, cooperation and remediation efforts.
Express exist The company said at the time that it appointed former Tyson Foods executive Stuart Glendinning to replace Baxter in September 2023, saying his resignation “is not related to the company’s accounting or financial reporting and the company confirms its previously announced guidance.”
The group, led by brand acquisition and management company WHP Global, currently operates Express and Bonobos after acquiring operating assets including 450 stores in late June.
WHP Global did not immediately respond to a request for comment.
