PracticeAccounting FirmsSEC launches probe into Walt Disney

SEC launches probe into Walt Disney

The Walt Disney Company is currently under investigation by US regulators over employment relationships between the company and relatives of several independent board members.

Link: AOL faces probe over revenue claims

According to Associated Press reports, the inquiry is not related to the company’s finances, but has to do with an August amendment to its 2001 year-end report, which revealed that three Disney’s independent board members had grown children employed by the company in recent years.

A fourth independent board member’s wife is employed at Lifetime Entertainment Television, a cable network half-owned by Disney.

Disney is believed to be co-operating fully with this investigation, according to AP.

At the same time the entertainment group has launched a series of long-expected corporate governance moves designed to strengthen independence, including the appointment of a new independent director and a new presiding director.

In addition, former Seagram vice chairman and chief financial officer Robert Matschullat has been appointed to the board, making him chairman of Disney’s audit committee.

The company has performed poorly of late – its latest film Treasure Island generated just $12m in its opening weekend, after $140m was spent in making it. As a result the value of the film has been significantly reduced

Related Articles

Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

2m Emma Smith, Managing Editor