The former chief of defense contractor Raytheon Co. will reportedly pay a civil fine and return part of his 2000 bonus as part of a tentative settlement with the Securities and Exchange Commission.
The exact amount of the settlement with Daniel Burnham, Raytheon's chairman and chief executive from December 1998 to July 2003, has not been announced. Burnham sits on the board of directors for Colorado-based First Data Corp., which disclosed the impending settlement in a recent filing. First Data is the parent company of Western Union.
The SEC had been investigating Waltham, Mass.-based Raytheon for allegedly using improper accounting in 2000 and 2001 to conceal the declining market for a line of aircraft manufactured by Raytheon Aircraft Co., a subsidiary of the company.
Burnham has agreed to pay a fine and return a portion of his 2000 bonus to settle the allegations, though he will neither admit nor deny the allegations. Burnham received a bonus of $1.75 million in 2000 from Raytheon, the third-largest U.S. defense contractor and the maker of Patriot, Hawk and Tomahawk missiles.
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