Meat processor Tyson Foods has said it has agreed to settle an SEC case against the company regarding the disclosure of payments to executives

Food & Drink Weekly, Dec 20, 2004

Meat processor Tyson Foods has said it has agreed to settle an SEC case against the company regarding the disclosure of payments to executives. The SEC alleged that the company's proxy statements for the fiscal years from 1997 to 2003 had failed to comply with SEC regulations with respect to the disclosure and description of payments totaling around $1.7 million to Don Tyson, former senior chairman of the company.

The notice also alleged that Tyson Foods had failed to maintain an adequate system of internal controls regarding the personal use of company assets and the disclosure of payments and personal benefits. In addition, Don Tyson received notice the staff intended to recommend that the SEC bring a similar civil enforcement action against him. Tyson Foods said that it had proposed the company, without admitting or denying wrongdoing, would pay a civil penalty of $1.5 million, while Don Tyson, also without admitting or denying wrongdoing, would pay a civil penalty of $200,000.