Pete Hegseth, President-elect Donald Trump’s embattled decide for secretary of protection, obtained a six-figure severance fee and signed a non-disclosure settlement when he exited the group Concerned Veterans of America. The fee got here amid allegations of monetary mismanagement, repeated incidents of intoxication and sexual impropriety, in addition to dissension amongst its leaders over Hegseth’s international coverage views.
The Army veteran turned Fox News host signed a non-disclosure settlement when he stepped down as CEO in January 2016, two sources related to Concerned Veterans of America advised CBS News, with one supply saying the settlement included a monetary payout. The CVA sources spoke to CBS News below situations of anonymity as a result of they weren’t approved to publicly focus on legally-binding contracts, whereas additionally fearing skilled reprisal.
Public tax filings reviewed by CBS News verify that Hegseth was paid greater than $172,000 between October 2016 and September 2017 – effectively after Hegseth’s formal departure from his position as CEO of Concerned Veterans of America in January 2016.
Hegseth remained listed on tax filings as a former CEO working 50 hours per week between 2016 and 2017. An archived 2016 biography on Hegseth’s website described him as a Fox News contributor and host, and didn’t checklist an ongoing position with Concerned Veterans for America.
In a press release to the Military Times on the time of his departure, Hegseth stated he was leaving his position within the group to deal with releasing a guide and different advocacy work, whereas CVA stated it wished him effectively “in all future endeavors.”
Contacted by CBS News, Hegseth’s lawyer, Timothy Parlatore, didn’t return a response earlier than publication.
But Hegseth on Wednesday pushed again on stories that Trump is considering other candidates for defense secretary. On Capitol Hill as he continued to go to Republican members of Congress, he advised CBS News that he doesn’t intend to withdraw his identify from consideration. He additionally stated he spoke with Trump Wednesday morning, and the president-elect inspired him to maintain combating.
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Experts consulted by CBS News stated severance funds and non-disclosure agreements for outgoing CEOs are frequent. Such funds are issued for quite a few causes, together with to keep up skilled relationships, to work as an adviser to an incoming CEO, or to offer a smooth touchdown for departing leaders, they stated.
Hegseth has contested the allegation that he was compelled out of his CEO place. On Dec. 4 he retweeted a letter obtained by the New York Post on X, saying: “Read for your self. You’ll see the reality is on our aspect.”
The letter, written on Concerned Veterans of American letterhead in January 2016, was authored by Randy Lair, a trustee of the veterans’ advocacy group.
“The fact is Pete resigned his place as CEO of Concerned Veterans of America on account of a distinction of opinion as to the way forward for the group and in order that he might deal with different endeavors, together with, his relationship with Fox News,” Lair wrote partially.
He added: “Pete was not terminated by the group and, in actual fact, we at CVA labored with him although [sic] this tough choice and mutually agreed the top of 2015 was one of the best timing for each events…The backside line is that Pete Hegseth voluntarily resigned his place and CVA acknowledges and appreciates his accomplishments as CEO.”
Sources affiliated with Concerned Veterans of America on the time of Hegseth’s tenure advised CBS News that there was a “distinction of opinion” over Hegseth steering the group towards advocacy for international coverage views that championed army intervention. Senior leaders of the group strongly opposed Hegseth’s international coverage advocacy over its historic mission of backing conservative fixes to the Department of Veterans Affairs.
However, the sources additionally highlighted what Lair’s letter didn’t point out, particularly inside assessments of Hegseth’s dealing with of the group’s funds and the alleged incidents of intoxication and sexual misconduct, which Hegseth and Parlatore, his lawyer, have denied.
Hegseth’s monetary document at Concerned Veterans for America
Hegseth led Vets for Economic Freedom Trust, working as Concerned Veterans for America, from 2012 to 2016. Tax data present that, throughout three of the 5 years of his management, the group spent extra money than it raised from donations and different means.
Filings for October 2012 to September 2013 present the group introduced in $3.8 million however spent $3.9 million, representing a shortfall of $130,000. Hegseth’s CEO compensation is listed as $67,500.
Filings for October 2013 to September 2014 present income swelled $15.7 million however the group spent $16.1 million — together with $8.6 million on promoting and promotion — leading to a shortfall of $428,000. Hegseth’s wage is listed as $144,894.
Filings for October 2014 to September 2015 present Hegseth’s wage grew to $182,549 and the group ran a surplus for the primary time since 2011, with income of $14.1 million and bills of slightly below $14 million.
However, the group once more spent greater than it raised the next 12 months, when Hegseth was listed because the outgoing CEO. Filings for October 2015 to September 2016 present the group raised slightly below $16 million however spent $16.4 million, leading to a shortfall of $437,000.
The filings present bills on the group have been slashed after Hegseth’s departure. From October 2016 to September 2017, compensation, salaries and wages have been decreased to $2 million, down from nearly $7 million the earlier 12 months. Spending on journey was decreased to $416,000, down from nearly $2.4 million, and spending on conferences, conventions and conferences amounted to $124,000, down from $2.4 million.
Hegseth has denied allegations of monetary mismanagement, repeated incidents of intoxication and sexual impropriety on the group. In an op-ed in The Wall Street Journal revealed Dec. 4, Hegseth stated, “We had lots of of staff and hundreds of volunteers — but based mostly on the nameless accusations of some disgruntled staff, the legacy media has made it sound as if we ran a university frat home. That’s simply unfaithful.”
Allegations at Vets for Freedom
Prior to becoming a member of Concerned Veterans for America, Hegseth led Vets for Freedom (VFF) from 2007 to 2010, the place he additionally confronted allegations of monetary mismanagement.
In 2008, the group raised $8.7 million, however spent $9.1 million. Filings present it obtained a mortgage of $20,000 to “present further liquidity to the group.”
The New Yorker reported that donors have been involved their cash was being wasted and organized for VFF to be merged with one other group, Military Families United, which took over most of its administration.
Revenue at VFF dwindled to $268,000 by 2010 and by 2011, the group’s income was listed as $22,000. Hegseth joined Concerned Veterans for America the next 12 months.
Margaret Hoover, host of the PBS program “Firing Line” and a former adviser to Vets for Freedom, stated in an interview on CNN that Hegseth had managed the group “very poorly.” Hoover expressed doubt about his means to run the sprawling Defense Department when he had struggled with a workers of lower than 10 individuals, and a funds of below $10 million.
“I do not understand how he’ll run a corporation with an $857 billion funds, and three million people, based mostly on what I noticed in these years,” she stated.
