Speaking of Clawbacks . . . SEC Action This Week

As noted this morning in Broc's Blog, the SEC on Tuesday filed an action against the former CEO of Diebold, Inc. seeking reimbursement for bonuses and other incentive-based and equity-based compensation under Section 304 of the Sarbanes-Oxley Act of 2002. The Commission's complaint alleges that Diebold was required to restate its annual financial statements for 2003, as well as other reporting periods, as a result of fraud and other misconduct. The complaint further alleges that the CEO received cash bonuses, shares of Diebold stock, and stock options during the 12-month period following the issuance of Diebold's 2003 financial statements. The complaint does not allege that that the CEO engaged in the fraud. Without admitting or denying the Commission's allegations, the CEO agreed to consent to a final judgment ordering him to reimburse $470,016 in cash bonuses, 30,000 shares of Diebold stock, and stock options for 85,000 shares of Diebold stock.

The SEC filed fraud and other charges against Diebold, its former CFO, former Controller and later CFO, and the company's former Director of Corporate Accounting.

The SEC complaint can be viewed here.

The SEC news release can be viewed here.

On June 4, 1989, the Soviet Union allowed partially free elections in Poland and Lech Walesa's Solidarity movement captured 99 out of 100 seats in the Senate - and every seat it was allowed to contest in the lower House. Amazing to think that Poland was under the Soviets' thumb until 1989.