Revlon loses CFO following fine for financial reporting

Published: 3-Jul-2013

Steven Berns is to step down as CFO of the US beauty brand on 19 July


Revlon’s Chief Financial Officer, Steven Berns, has quit his job at the US beauty brand. Revlon has made clear that Berns’ leaving is not related to any worries about Revlon’s accounting numbers or financial reporting, it reported to the US Securities and Exchange Commission (SEC) recently.

Berns has served as Revlon’s CFO since 2009 and now moves to become the Executive VP and CFO of the Tribune Company, although he doesn’t officially leave until 19 July. Chief Accounting Officer Jessica Graziano, meanwhile, moves to be Revlon’s interim Principal Financial Officer. Despite the sudden move, Revlon investors appear not to be worried. Investors have seen the value of their investment climb more than 30% since the start of the year.

Separately, Revlon owner Ronald Perelman, who owns more than 76% of the company, has settled with the SEC on a dispute relating to an attempt by Perelman to take Revlon private in 2009. “Going private transactions create opportunities for shareholder abuse and can have coercive effects on minority shareholders,” said Antonia Chion, Associate Director of the SEC’s Division of Enforcement. “By erecting informational barriers, Revlon kept critically important information from its board and, in turn, misled investors.”

Revlon has now settled the SEC’s charges and stumped up an $850,000 SEC penalty. It had already put aside almost $9m in contingency for the fine.

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