SEC hits former Argo boss Watson with fine for undisclosed compensation
The Securities and Exchange Commission (SEC) has ordered Mark Watson III, the former president and chief executive of Argo Group International Holdings, to pay a penalty for not disclosing some $5.3 million worth of additional perquisites and personal benefits.
The $450,000 fine relates to misrepresentations made regarding Watson's executive compensation while he was running Argo. The SEC also initiated cease and desist proceedings against Watson.
According to an SEC filing, Argo disclosed a total of approximately $1.22 million worth of perquisites and personal benefits provided to Watson between 2014 and 2018, with an annual average of approximately $244,000.
However, Argo failed to disclose over $5.3 million worth of additional perquisites and personal benefits provided to Watson, thereby understating the perquisites and personal benefits portion of Watson’s compensation by an annual average of over $1 million, or 400 percent.
Undisclosed compensation included expenses associated with use of corporate aircraft, rent and other housing costs, use of corporate automobiles, helicopter trips, other travel costs and tickets to sporting and other entertainment events, among other things.
The SEC said the money from the fine will be transferred to the general fund of the US Treasury.
Argo settled $900,000 charges brought by the SEC in June 2020, while Watson stepped down from his position at Argo in November 2019.
