In 2018, a shareholder in the insurance company issued a press release alleging its disclosure failure related to the matter. The CEO stepped down from his position in November 2019.
Argo agrees to pay $900,000 to settle SEC complaint
According to the SEC, Argo violated the federal securities law provisions regarding proxy solicitation, reporting, books and records, and internal controls.
In a statement, SEC Philadelphia Regional Office Director Kelly Gibson said, “Even after being made aware of potential inaccuracies in its disclosures related to executive compensation, Argo did not accurately and adequately inform shareholders about the perks and benefits it provided its highest-ranking executive over a five-year period.”
“We continue to focus on whether companies are fully disclosing compensation paid to their top executives and have appropriate internal controls in place to ensure that shareholders receive information to which they are entitled,” she added.
Argo agreed to settle with the SEC without admitting or denying the allegation against it. The insurance company consented to the Commission’s cease-and-desist order, which included payment of a civil penalty of $900,000.
