CEO Returns $2.8 Million Earned During Fraud

The former chairman and CEO of CSK Auto Corp. greed to return $2.8 million in bonus compensation and stock profits that he received while the company was committing accounting fraud. The Securities and Exchange Commission said CSK Auto was fraudulently overstating its income to shareholders.

Maynard L. Jenkins agreed to return $2.8 million in bonus compensation and stock profits that he received while the company was committing accounting fraud. Although he personally was not charged in wrongdoing, this is called a “clawback” under the Sarbanes-Oxley Act (SOX). O‚ÄôReilly Automotive Inc. of Springfield, Mo. has since acquired CSK Auto and they will receive the payment.

“CEOs should know that they can be deprived of bonuses or stock profits they received while accounting fraud was occurring on their watch,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. The period of fraudulent financial statements was fiscal years 2002-2004.

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