Use A Us Publicly Traded Company Case Study
Use a US publicly-traded company’s proxy statement and 10-K to answer the following questions:1. Who is the company’s current CEO? Is he or she also the Chair of the Board?
The current CEO of Boston Beer is Martin F. Roper. He is the not the Chair of the Board. That position is held by C. James Koch.
2. Who serves on the board’s Audit Committee? How many members are Financial Experts? What experience qualifies them for that designation?
Jay Margolis, Jean-Michel Valette, Pearson C. Cummin, III, and Gregg A. Tanner all serve on the Audit Committee.
All of the members have been determined to be “audit committee financial experts” by the Board defined under SEC rules.
SEC defines an audit committee financial expert as an individual
with these attributes which the members of the Audit Committee meet.
An understanding of financial statements and generally accepted accounting principles (GAAP) The ability to assess the application of GAAP in connection with the accounting for estimates, accruals, and reserves
Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues similar to those expected to be raised in the registrant’s financial statements, or experience in actively supervising those conducting such activities
An understanding of internal controls and procedures for financial reporting
An understanding of the audit committee’s functions.
3. What was the CEO paid last year? What portion of his or her total pay was in the form of bonus? In the form of stock-based awards? What performance measures were used to determine the CEO’s pay?
CEO Pay: $1,519,541
Percentage of Pay was Bonus: 51.3%
Stock-based awards: 0%4. Who or what entity holds the highest percentage of the company's stock? Are most of the beneficial owners reported individuals or institutions?5. How many common shares are outstanding? Is there more than one class of common stock outstanding? If so how many votes do each share of each class get? 6. Does the company have any preferred shares outstanding?7. Does the company have any bonds outstanding?8. Did the company pay dividends last year?
The current CEO of Boston Beer is Martin F. Roper. He is the not the Chair of the Board. That position is held by C. James Koch.
2. Who serves on the board’s Audit Committee? How many members are Financial Experts? What experience qualifies them for that designation?
Jay Margolis, Jean-Michel Valette, Pearson C. Cummin, III, and Gregg A. Tanner all serve on the Audit Committee.
All of the members have been determined to be “audit committee financial experts” by the Board defined under SEC rules.
SEC defines an audit committee financial expert as an individual
with these attributes which the members of the Audit Committee meet.
An understanding of financial statements and generally accepted accounting principles (GAAP) The ability to assess the application of GAAP in connection with the accounting for estimates, accruals, and reserves
Experience preparing, auditing, analyzing, or evaluating financial statements that present a breadth and level of complexity of accounting issues similar to those expected to be raised in the registrant’s financial statements, or experience in actively supervising those conducting such activities
An understanding of internal controls and procedures for financial reporting
An understanding of the audit committee’s functions.
3. What was the CEO paid last year? What portion of his or her total pay was in the form of bonus? In the form of stock-based awards? What performance measures were used to determine the CEO’s pay?
CEO Pay: $1,519,541
Percentage of Pay was Bonus: 51.3%
Stock-based awards: 0%4. Who or what entity holds the highest percentage of the company's stock? Are most of the beneficial owners reported individuals or institutions?5. How many common shares are outstanding? Is there more than one class of common stock outstanding? If so how many votes do each share of each class get? 6. Does the company have any preferred shares outstanding?7. Does the company have any bonds outstanding?8. Did the company pay dividends last year?