On Dec. 20, the SEC announced that it had reached a settlement with Walt Disney Company for charges that Disney failed to disclose certain relationships between the company and its directors in 1999 and 2000.
According to the SEC, Disney failed to disclose that the company employed three children of its directors, each of whom received annual compensation ranging from $60,000 to more than $150,000. Among the other violations was the failure to disclose that the spouse of another director was employed by a subsidiary 50 percent owned by Disney; that spouse received compensation in excess of $1 million annually.
