Remember in high school how the local sheriff would parade a convicted drug dealer in front of you in an effort to scare you straight? Well something similar is happening at publicly traded companies lately and it’s pretty entertaining to watch. A month after the SEC collected $2.2 million from Tyson Foods (TSN) and its former chairman, Don Tyson for failing to adequately disclose perks that were provided to Tyson, lots of other companies are suddenly beginning to open up after years of hiding their perks in the proverbial closet.
Yesterday, for example, Source Interlink (SORC) disclosed that the company has “historically provided certain perquisites to our executive officers”. Among the perks listed are two corporate apartments for the Florida-based company: one in Manhattan, which kind of makes sense given that the company is in the magazine business, and the other in the metropolis of Park City, Utah. It’s not clear from the filing how much the company, whose market cap is around $500 million, is paying for the two apartments or how much personal use is going on. What is clear is that a quick search of SEC filings for the words “personal use of apartments” turns up no other similar examples.