Tracy Burnett Talks to Financial Times About SEC’s Charges Against Celsius
Litigation Partner Tracy Burnett was quoted in a Financial Times article entitled “SEC Cracks Open Comp Accounting Charges at Energy Drink Company.” The article discussed the Securities and Exchange Commission’s charge against energy drink Celsius for improper accounting controls, alleging the company amended the vesting period for stock-based compensation for six departing employees and retiring board members, leading to improper expense disclosures.
Tracy explained that the SEC “has historically taken a very dim view of financial statements and disclosures that are based on non-GAAP accounting policies.” A best practice is to disclose all material information, she said. The SEC's charges resulted in a $3 million settlement with Celsius, with no admission of wrongdoing. However, it sends a message to boards to establish proper processes for reviewing changes to compensation plans.
Financial Times subscribers may read the full article here.
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