Saks Investigation
Birmingham, Ala.–based Saks Inc. terminated several executives after an internal investigation found that the company hadimproperly collected approximately $20 million in markdown allowance money during the 1999–2003 fiscal years. Among those asked to resign were Donald Watros, chief administrative officer; Brian Martin, former general counsel and current senior vice president; and Donald Wright, chief accounting officer. According to a company statement, the audit committee found no culpability in this matter among other senior-level management but was critical of the quality of communication during the investigation and recommended reducing or eliminating bonuses for some positions, including chief executive officer and chief financial officer. The investigation is continuing to look at earlier years. The company announced its intention to reimburse or compensate those vendors affected.
