Office Depot (ODP) settled SEC charges regarding Reg FD violations. Stephen Odland and Patricia McKay will each pay $50,000 personally. However because of their incompetence (nicest thing we can say) in violating clear Reg FD policies Office Depot will have to pay out a $1 million fine. Why do the shareholders have to pay the fine for the inappropriate actions of the two executives. I would like to see the Board hold them accountable. After all they were the CEO and CFO not just junior staffers.
Can you imagine working for a boss who has violated securities law and then watch them sign off on compliance sensitive issues. Will investors trust these two again. Stephen Odland is still the CEO and Chairman of the Board.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no position in stocks mentioned in this post.
- Office Depot paying $1M to settle SEC charges (seattletimes.nwsource.com)
- Office Depot Settles SEC Fair Disclosure Charges for $1 Million (legaltimes.typepad.com)
- SEC v. Office Depot: How Not to Talk to the Analysts (blogs.wsj.com)
- SEC alleges Office Depot made selective disclosure (marketwatch.com)
- Office Depot Settles SEC Charges (online.wsj.com)
- Office Depot paying $1M to settle SEC charges (sfgate.com)