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SEC Staff Plans to Seek Action Against Tyson Foods

August 17, 2004|From Associated Press

LITTLE ROCK, Ark. — The Securities and Exchange Commission staff plans to seek a civil enforcement action and possible monetary penalties against Tyson Foods Inc. over benefits the company paid some executives, Tyson Foods said late Monday.

The world's largest meat producer also said its former senior chairman had repaid the company $1.5 million.

Springdale, Ark.-based Tyson disclosed in March that the agency was investigating company benefit payments, and said that it was cooperating with the probe.

The notice said SEC staff would recommend the agency take enforcement action against the company, Tyson Foods said.

The staff alleges that company proxy statements for fiscal years 1997 through 2003 did not fully describe or disclose about $1.7 million in perquisites enjoyed by Don Tyson, former senior chairman, and the company failed to maintain adequate internal controls on the personal use of company assets and the disclosure of perquisites and personal benefits.

In a statement Monday, Tyson said independent members of its board reviewed the allegations and that Don Tyson voluntarily paid $1.516 million to the company for certain items board members identified as pertinent to the years under review.

Tyson is also a member of the board.

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