Former Raytheon CEO pays fine
Daniel P. Burnham, the former chief executive officer of Raytheon Co. in Waltham, has agreed to pay an unspecified fine and return part of the $1.75 million bonus he received in 2000 to settle federal allegations that a Raytheon subsidiary accounted improperly for a line of commercial aircraft sales at the beginning of the decade.
Burnham, 59, who served as CEO of the defense and aerospace company from December 1998 to July 2003, will submit a settlement offer that must be approved by the Securities and Exchange Commission, according to an SEC filing by First Data Corp., a Greenwood Village, Colo., company where Burnham now sits on the board of directors and chairs the compensation comittee.
Under the proposed settlement, Burnham, without admitting or denying the SEC's allegations, would consent to the entry of a cease and desist order finding that he violated federal securities laws governing accounting disclosures, according to the filing. The filing didn't specify the amount of the fine or the portion of the bonus Burnham will return.
Despite the settlement, First Data, a supplier of e-commerce payment systems to businesses and consumers, nominated Burnham to another two-year term on its board. The filing said its corporate governance committee reviewed the facts surrounding Burnham's settlement offer and "noted that the allegations were not related to Mr. Burnham's service" with First Data. Citing "the forthright manner" in which Burnham brought the matter to the attention of the committee, it said First Data's board decided Burnham's "valuable service to the company over the past two years warranted his re-nomination." (By Robert Weisman)
