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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