Express, the clothing retailer that recently went bankrupt, failed to disclose almost $1 million in executive perks to its former CEO, according to the Securities and Exchange Commission (SEC). The agency settled charges against the company for not revealing the perks, which included expenses associated with the CEO’s use of chartered aircraft for personal reasons. These perks were not disclosed in proxy statements for fiscal years 2019, 2020, and 2021 when Tim Baxter was CEO.
The SEC stated that Express understated its CEO’s compensation by 94% over the three fiscal years due to the undisclosed perks. Despite this, the SEC did not impose a civil penalty on the company because of its self-reporting, cooperation, and remedial efforts.
In September 2023, Express appointed former Tyson Foods executive Stewart Glendinning to replace Baxter as CEO. The company clarified that Baxter’s resignation was not related to any accounting or financial reporting issues.
Currently, WHP Global, a brand acquisition and management firm, is running Express and Bonobos after acquiring their operating assets, including 450 stores, in late June. WHP Global did not respond immediately to a request for comment.
Kate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
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