The SEC charged that the former CEO of Polycom used corporate funds to pay for about $190,000 of personal perks for several years that were not disclosed. During that time, the CEO’s total compensation as reported ranged from more than $4 to over $7 million annually.
The SEC complaint contains numerous allegations that the former executive had falsified expense reports and provided fake business descriptions in order to obtain reimbursement for personal meals, clothing, entertainment and travel.
The company was charged with inadequate proxy disclosure from 2010 to 2013. It appears that at least one incident of the CEO’s abuse of expense reporting was uncovered by the company in 2011, but the full scope was unknown to the company and the CEO’s activities continued.