A skiing hideaway, three sportscars, a lavish draw to cover personal expenses -- these are among the corporate perquisites which were enjoyed by an upstate New York executive but not disclosed to the stockholders of his company, according to a government suit.
In a civil complaint filed in U.S. District Court here, the Securities and Exchange Commission accused William C. Moog and Moog Inc. of making false and misleading statements to stockholders.
The defendants while neither admitting nor denying the allegations, consented to a court-ordered permanent injunction against repeating such acts.
Moog Inc., which is 35 percent owned by William Moog, manufactures electronic control systems, among other things. About 1 percent of $93.6 million in revenues in 1978 was from manufacturing fibreglass skis.
In April, 1976, William Moog wanted to buy a condominium in Aspen. Colo., but couldn't raise the funds, according to the SEC. He tried to get the company to buy it for him, but was turned down by the board.
The SEC says that Moog Inc.'s independent auditor, Peat, Marwick, Mitchell & Co., arranged for the $205,000 condonimuium to be bought for Moog by Solar Sportsystems Corp., another Buffalo company.
All operating expenses for the condominium were then picked up by Moog Inc., the SEC alleged.
In another self-serving transaction, Moog proposed that officers with the company for more than 25 years "could obtain payment for accrued by unused vacation leave time."
The proposal was referred by the board of directors, where Moog is chairman, to the executive compansation committee, which Moog also chairs. It then went to the corporate policy and planning committee, which Moog heads as chief executive officer, the SEC said.
In the end, Moog, the only executive with 25 years of service, collected $164,496 in pay for unused vacation time.
In addition to an annual salary of about $190,000, the SEC said Moog collected an average of $7,000 a month from the company to cover personal expenses.
As part of the settlement, Moog Inc. agreed that an audit committee would review all transactions involving William Moog, including any corporate funds that might have gone to a discotheque he owns in Worcester, England, called Sashas.