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The SEC’s order finds that from 2011 2015, Dow failed to ensure that approximately $3 million in perquisites provided to its chief executive officer (“CEO”) were adequately identified and disclosed as other compensation in Dow’s 2013 2016 proxy statements. Specifically, Dow failed to apply the Commission’s perquisite test which requires disclosure of personal benefits not widely available and not integrally and directly related to an executive’s job duties. Instead, Dow used a business purpose test, which the Commission considered, but ultimately decided not to adopt when it issued new disclosures rules in 2006..

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Affirmative consent is not, in the end, the same as poorly trained college boards trying to play jury and judge. It not even related to that, other than by the correlation of often being implemented at the same time. Those boards would be just as bad enforcing no means no (likely demanding the accused provide proof the other person never said no, which is actually a harder standard than trying to prove they did anything to indicate yes!)..

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