Global: Shift4 Payments Reaches $750,000 Settlement with SEC Over Disclosure Violations

Shift4 Payments, a payment processing firm founded by Jared Isaacman, has reached a $750,000 settlement with the U.S. Securities and Exchange Commission (SEC) following allegations of disclosure violations related to its 2020 annual filings and proxy statement.

SEC Findings

According to the SEC’s order, Shift4 failed to disclose critical compensation details involving relatives of company executives and directors:

1. Compensation to a Non-Executive Employee: The sibling of an executive and director, who is also the child of another director, received approximately $1.1 million in compensation as a non-executive employee of the company.
2. Residual Commissions Paid to a Sales Agent: Another individual, a sibling of an executive officer and director (and the stepchild of a different director), was paid about $280,000 in residual commissions while serving as an independent sales agent, not an employee of the company.

These omissions constituted violations of the reporting and proxy solicitation provisions under the Securities Exchange Act of 1934.

Settlement Terms

Without admitting or denying the findings, Shift4 agreed to a cease-and-desist order and to pay a civil monetary penalty of $750,000.

Leadership Spotlight

The settlement comes as Shift4’s founder and CEO, Jared Isaacman, has been nominated by U.S. President-elect Donald Trump to serve as the next head of NASA. The nomination brings heightened scrutiny to the company’s governance practices and disclosure standards.

Commitment to Compliance

Shift4 Payments has stated its commitment to improving transparency and compliance with regulatory requirements to maintain stakeholder confidence and align with industry standards.