Jul 5, 2018
Dow Chemical settles with SEC over ex-CEO's undisclosed perks
The Dow Chemical Co. has reached a settlement with the U.S. Securities and Exchange Commission following a three-year investigation that found its former chief executive failed to disclose about $3 million in perks.
The company agreed to pay the SEC $1.75 million and to hire a consultant to make sure the company is complying with SEC rules related to executive perks, according to Reuters.
Liveris stepped down as CEO in April following a multi-billion dollar merger with DuPont. In 2017, he earned $65.7 million in compensation for his final year with the company.
The SEC investigation, which Reuters detailed over several stories, found Liveris used Dow aircraft for his family to use and threw parties at the Super Bowl while Dow customers were in attendance.
Dow officials said the expenses were legitimate business expenses, but added the company has started implementing changes to improve disclosures.
Incremental debottlenecking and capacity expansion projects to meet global demand for silicone-based solutions in targeted end-markets
The investment plans include:
“The projects we are announcing today support our ability to continue to meet strong global demand for Dow’s silicones materials, enabling us to grow and innovate more quickly with customers and advancing our leading positions in our targeted end-markets,” said Jim Fitterling, chief executive officer of The Dow Chemical Company and chief operating officer for the Materials Science Division of DowDuPont. “Further, these targeted investments are expected to deliver fast paybacks and higher return on invested capital for Dow, contributing to greater earnings and cash generation.”
In addition, the company also announced the start of a feasibility study for the construction of a new, world-scale siloxane plant. The geographic location of the new proposed siloxane facility will be determined as an outcome of the feasibility study.
“Dow is committed to our ongoing investment in both upstream and downstream assets to bring a reliable supply to our customers,” said Mauro Gregorio, business president, Dow Consumer Solutions. “As an essential addition to Dow’s global silicones manufacturing footprint, the proposed new siloxane plant will expand our access to differentiated monomers and intermediates around the world, while strengthening our capabilities to accelerate and execute our strong innovation pipeline.”
As a global leader in innovation and silicone-based technology, Dow already operates nearly twenty silicones manufacturing facilities globally, including three world-scale siloxane manufacturing facilities, located in Carrollton, Kentucky, U.S.A., Barry, Wales, United Kingdom and Zhangjiagang, Jiangsu, China.