Express failed to disclose nearly $1 million in executive benefits to the clothing retailer’s former CEO, the Securities and Exchange Commission said Tuesday, saying it had settled charges against the company, which filed for bankruptcy early of year
The agency did not identify the former CEO by name, but said it involved proxy statements for fiscal years 2019, 2020 and 2021, when Tim Baxter was 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 personal perks and benefits provided to its CEO, including certain expenses associated with the CEO’s authorized use of chartered aircraft for personal purposes,” the SEC said.
As a result, the company, which applied Chapter 11 bankruptcy in April, it understated its CEO’s compensation by 94% over three fiscal years, according to the agency.
Public companies have a duty to comply with disclosure obligations so “investors can make educated investment decisions,” said Sanjay Wadhwa, acting director of the SEC’s Division of Enforcement. Still, the commission did not impose a civil penalty because of the company’s self-reporting, cooperation and remediation efforts, Wadhwa noted.
to express in In September 2023, it named former Tyson Foods executive Stewart Glendinning to replace Baxter, calling his resignation “not related to the company’s accounting or financial reporting, and the company affirms its previously announced guidance,” the company at that time.
A group led by brand acquisition and management firm WHP Global now manages Express and Bonobos after buying their operating assets, including 450 stores, in late June.
WHP Global did not immediately respond to a request for comment.