The U.S. Securities and Exchange Commission said it has begun an informal inquiry into an amendment to Lear Corp.'s 2001 annual report that detailed insider transactions and the employment of Lear executives.
Auto interiors supplier Lear filed the amendment in September 2002. The company said Tuesday that the SEC requested all relevant documents related to the disclosure.
In the filing, relatives of Lear executives were disclosed as employees of Lear and their salaries and bonuses were disclosed. Other deals included relatives who worked at vendors.
Lear employs two brothers-in-law of Chairman and CEO Robert Rossiter, and three other relatives, including two brothers, work at vendors to Lear, according to the filing.
Lear paid $10.7 million in 2001 to the businesses that employed relatives of Rossiter, according to the filing. The company said the services and components purchased went through Lear's normal purchasing procedures.
Among the outside deals disclosed in the filing:
Terrence Rossiter and Ray Green, a brother-in-law of Lears DaimlerChrysler division President Charles Fisher, are salespeople at Analysts International's Sequoia Services Group. Lear paid $6.2 million to Analysts International for software services and $988,074 for computer equipment in 2001.
Brian Rossiter represented Center Manufacturing and Sarnamotive/Blue Water. Lear bought $1.6 million worth of injection-molded plastic parts from Sarnamotive/Blue Water, for which Brian Rossiter received a commission. Lear also bought $476,822 worth of steel stampings from Center Manufacturing.
Terrence Kittleson, a brother-in-law of Lear's Robert Rossiter, works at Trammell Crow Co. as an executive vice president. Lear paid Trammell Crow $1.6 million in 2001 for building-maintenance services and $97,239 for brokerage services.
The filing also listed the positions and salaries of 10 relatives of Lear executives.