Specialty re/insurer Argo has been subpoenaed by The US Securities and Exchange Commission over compensation practices for its executives, and is now conducting an internal review.
This development is the latest chapter in what started as a messy back-and-forth between Argo and its fourth-largest shareholder Voce Capital Management.
The public exchange culminated in the re/insurer announcing plans to introduce a process of phased declassification of the Argo Board of Directors, after which the entire board will stand for election annually.
Another proposal laid out plans to reduce the maximum size of the Board from 13 to 11.
Argo’s board also unanimously approved a series of changes that will see an alteration to the way its executives are compensated.
Now, the re/insurer says it has received a subpoena from the SEC seeking documents primarily with respect to the company’s “disclosure of certain compensation-related perquisites.”
“The Company, working with the assistance of outside counsel, is fully cooperating with the SEC and does not believe that the amounts involved are material to the Company’s financial position or results of operations,” reads a statement from Argo.
The firm added that it is committed to governance practices that support continued value creation for all shareholders.