Dow Chemical says mistakenly paid for $719,923 in CEO bills

* Dow Chemical filing blames ‘failure of current policies’

* Dow says CEO wrote personal check to cover the expenses

By Ernest Scheyder

NEW YORK, March 28 (Reuters) – Dow Chemical Co (DOW.N: Quote, Profile, Research) paid
for $719,923 of its chief executive’s personal expenses over
the course of four years, an error that has since been
rectified, the company said in a regulatory filing.

An internal audit at the largest U.S. chemical maker found
that “shortcomings in record-keeping and processing, as well as
a failure of current policies and procedures” led to the
error.

Andrew Liveris, who has been CEO since 2006, immediately
wrote a personal check for the entire amount when he was told
of the error, Dow said in a filing with the U.S. Securities and
Exchange Commission on Friday.

Dow said it has changed the way it handles expenses to
avoid the mistake happening again.

Dow said its customer events department failed to charge
Liveris for certain expenses he incurred during company-related
meetings.

Dow declined to list specific items that contributed to the
$719,923 figure.

“This was a simple case of administrative error, where the
expenses were misallocated and upon discovering this, Mr.
Liveris immediately wished to pay off the expenses in full,”
said Dow spokesman Declan Kelly.

Liveris took home roughly $21.3 million in total
compensation for 2010. That includes a base salary of $1.7
million and stock awards valued at $5.7 million when they were
granted.

The Midland, Michigan-based company also paid $19,906 for
Liveris’ automobile, $134,068 for his use of a private company
jet and $14,438 for his home security system.

The company’s board of directors, of which Liveris is
chairman, requires him to use the company jet and other
services for his personal safety.

The story was first reported by the website
www.footnoted.com.
(Reporting by Ernest Scheyder; Editing by Carol Bishopric)

Dow Chemical says mistakenly paid for $719,923 in CEO bills