Thursday, November 22, 2012

Ex Boss of Kettle Chips repays Bonus





Michael Mendes, suspended in February as chief executive of Diamond Foods, has agreed to repay two years’ worth of bonuses after an accounting scandal was exposed.

An investigation discovered a number of irregularities that cause the firm to restate its 2010 & 2011 finances.

Mendes left the firm with no severance pay and will be paying back $2.7m of bonuses and 6,665 of company shares.

The company’s share price fell by 85% since September last year due in part to claims that payments to employed walnut farmers were falling through.

An audit team discovered that the farmer’s payments had been accounted for the wrong years, which in turn inflated Diamond’s bottom line during 2010-2011. This mistake knocked off $17m off their 2010 profit and $39.5m off 2011.

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