The Securities and Exchange Commission has settled charges with Stanley Black & Decker Inc. for failing to disclose perks provided to certain executives, as required by the Securities Exchange Act of 1934.
Also, a former executive with the New Britain-based tool company, Jeffery D. Ansell, agreed to settle charges that he caused Stanley Black & Decker to violate proxy solicitation and books and records provisions of the federal securities laws.
According to the SEC’s order against Stanley Black & Decker, the company failed to disclose at least $1.3 million worth of perks and personal benefits paid to, or on behalf of, four of its executive officers and one of its directors from 2017 through 2020. The perks mainly consisted of expenses associated with the executives’ use of corporate aircraft.
Stanley Black & Decker self-reported the disclosure failures and other potential violations of federal securities laws, and cooperated with the SEC’s investigation. The SEC did not impose a civil penalty on the company.
Without admitting or denying the SEC’s findings, Stanley Black & Decker agreed to implement remedial measures.
“We are pleased to resolve these matters and appreciate the SEC’s acknowledgement of our voluntary disclosure, cooperation and remediation,” Stanley, Black & Decker said in a statement. “As a company, we are committed to upholding the highest standards of corporate governance and maintaining best-in-class policies, procedures and controls.”
According to a separate SEC order, Ansell received undisclosed compensation that consisted of $280,000 in personal expenses he charged to the company. The SEC declined to bring charges against the company related to Ansell’s conduct, but ordered him to pay a $75,000 civil penalty.
The SEC announced the settlements this week.
“Today’s action not only reaffirms the Commission’s commitment to enforcing executive compensation disclosure rules, but also to incentivizing self-reporting and cooperation when entities and individuals discover violations of the federal securities laws,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “In the end, proactive compliance enhances public trust in our markets and benefits all participants, especially the investing public.”
