Transportation Secretary Elaine Chao has earned more than $ 40,000 in shares she promised to sell after joining Trump's cabinet last year
- Transport Secretary Elaine Chao has made more than $ 40,000 in acquisitions from stock in Vulcan Materials, a company she promised to divest from last year
- She agreed to resign from the Vulcan Materials board before joining the Department of Transportation and expected a cash payment for her shares.
- Vulcan did not give her a cash payment in April 2018, but gave her shares of company shares that she continued to hold
- Their stocks have increased by nearly 13% since April 2018, which means that they will receive a profit of more than $ 40,000
- Ethical officers say that its shares are not a conflict of interest
Transportation Secretary Elaine Chao has netted more than $ 40,000 in profits after retaining shares in a building materials company that she promised to divest from last year.
In an ethical agreement from 2017, she said she would not participate personally and substantially in a specific issue that I know I have a financial interest in. and resigned from her two-year position on the board of directors of Vulcan Materials before joining the Department of Transport.
The 66-year-old secretary expected a cash payment in 2016 for her & # 39; vested deferred stock units & # 39 ;, the year she would say goodbye to the company.
But instead of receiving a cash payout, she was compensated for leaving the company in shares of the company's shares, which she continued to hold, instead of paying out, according to a Wall Street Journal report released Tuesday.
Vulcan Materials Co. is & # 39; s country's largest supplier of crushed stone, sand and gravel for paving and building roads.
Transportation Secretary Elaine Chao has participated in Vulcan Materials, a building material company that has won more than $ 40,000 in the past year, despite its commitment to divest Vulcan last year.
Their stocks have risen by nearly 13% since April 2018, the month in which Chao said she would be cashed out of inventory, meaning she will receive more than $ 40,000 in profits, according to corporate and government filings.
Although she goes against her word, an ethical officer says that her profit is not a conflict of interest.
A Ministry of Transport spokesperson said that & # 39; department ethics officials have been working to clarify the term & # 39; cash payment & # 39; in the agreement to match what the company has actually done. & # 39;
The department maintains that Chao followed its agreements in the resignation of the board.
& # 39; In her ethical agreement, the Secretary agreed to resign from her counseling position and not to participate in cases with a direct and predictable impact on Vulcan Materials, which she has followed & said the Ministry spokesman van Transport.
Chao is married to senator Mitch McConnell, head of the senate. Details of Chao's holdings come from her own financial disclosures as well as from Senate disclosures filed by McConnell.
In an ethical agreement from 2017, she undertook to resign from her two-year position on the board of directors of Vulcan Materials and would receive a cash payment for her shares.
Rather than receiving a cash payout in April 2018, Vulcan gave her more business shares to compensate for the departure she was holding and which increased in value by nearly 13% during the year
Chao's decision to hold the shares is in stark contrast to those of transportation secretaries who had previously sold shares in companies before joining the department, led by ethical officers.
Transport Secretary Ray LaHood, who served under President Barack Obama, sold his interests in Caterpillar Inc. and Ford Motor Co. after he was confirmed to the cabinet.
& # 39; I basically sold everything. The ethics police told me to do it, so I did, & LaHood said to the outlet.
Chao & # 39; s former top deputy Jeffrey Rosen sold stakes in 16 companies when he joined the Department of Transportation.
& # 39; If you look at her ethical agreement, she completely unleashes her interest in Vulcan Materials, and that is what the senate represented, "said Walter Shaub, former head of the ethics department. & # 39; If the head of the DOT has a financial interest in an asphalt company, it does not send a message to DOT employees that ethics is a priority. & # 39;
Donald Trump appointed her to the Ministry of Transport in November 2016 and she was confirmed on January 31, 2017.
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