SPRINGDALE, Ark., April 28 /PRNewswire-FirstCall/ -- The Securities and
Exchange Commission (SEC) has given final approval to a settlement resolving
the SEC's investigation into the disclosure of certain executive perquisites
by Tyson Foods, Inc. (NYSE: TSN).
"Our company has cooperated fully with the SEC in an effort to resolve
this matter and are pleased to be moving forward," said John Tyson, chairman
and CEO of Tyson Foods. "We've also put additional controls and procedures in
place to help ensure executive perquisites are being properly tracked and
disclosed in the future."
The SEC's order resolves allegations that the company's proxy statements
for fiscal years 1997 through 2003 failed to comply with SEC regulations on
the disclosure and description of perquisites totaling approximately
$1.7 million provided to former Senior Chairman Don Tyson. The order also
resolves allegations that the company had not maintained an adequate system of
internal controls over the personal use of company assets and the disclosure
of perquisites and personal benefits.
Both the company and Mr. Tyson consented to the entry of the order without
admitting or denying wrongdoing. The SEC's order in this matter does not
involve any other Tyson executives, employees or board members.
As previously reported, Tyson Foods had offered to pay the SEC a civil
penalty of $1.5 million while Mr. Tyson had proposed to pay a civil penalty of
$200,000. The SEC has accepted the company's offer and, after further
negotiations, has agreed to accept a penalty of $700,000 from Mr. Tyson.
As previously disclosed, independent members of Tyson's Board of Directors
conducted their own review of the matter. Don Tyson voluntarily paid
$1.516 million to the company for certain items the independent board members
identified.
Don Tyson served as the company's CEO and chairman from 1967 to 1991, as
its chairman from 1991 to 1995, and as its senior chairman from 1995 until his
retirement in 2001. During his tenure, the company's revenue increased from
$51 million to more than $10 billion. In his retirement, Mr. Tyson has
continued to serve as a consultant to the company and as a member of its board
of directors.
"We value Don Tyson's leadership and his continued service to the company
he helped build," said Jo Ann R. Smith, chair of the Compensation Committee
for the Tyson Board. "Our committee will continue its efforts to ensure
Tyson's benefit plans and compensation practices are appropriately
administered."
Tyson Foods, founded in 1935 with headquarters in Springdale, Arkansas, is
the world's largest processor and marketer of chicken, beef, and pork and the
second-largest food company in the Fortune 500. The company produces a wide
variety of protein-based and prepared food products, which are marketed under
the "Powered by Tyson(TM)" strategy. Tyson is the recognized market leader in
the retail and foodservice markets it serves, providing products and service
to customers throughout the United States and more than 80 countries. Tyson
has approximately 114,000 Team Members employed at more than 300 facilities
and offices in the United States and around the world.
SOURCE Tyson Foods, Inc.
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Related links:
http://www.tyson.com
CONTACT:
media, Gary Mickelson, +1-479-290-6111, or
investors, Louis Gottsponer, +1-479-290-4826, both of Tyson
Foods, Inc.
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