CEO Charged With Not Disclosing Generous Perks to Shareholders

By:
Chris Gaetano
Published Date:
May 12, 2017
SECURITIES-AND-EXCHANGE-COMMISSION-facebook

The Securities and Exchange Commission has charged Miles Nadal, CEO and chairman of MDC Partners, with failing to disclose generous perks worth millions of dollars to shareholders as required by federal securities law.

On top of his already-generous $500,000 a year allowance, the SEC said Nadal also received "private aircraft usage, cosmetic surgery, yacht-and-sports-car-related expenses, jewelry, cash for tips and gratuities, medical expenses for Nadal, family members and others, charitable donations in Nadal’s name, pet care, vacation and personal travel expenses, club memberships, and certain expenses for which supporting documentation or information was incomplete," according to the SEC complaint. All told, the perks were worth about $11.285 million, none of which were disclosed to shareholders. 

“Perks paid to corporate executives should be properly disclosed so that investors can make informed decisions,” said G. Jeffrey Boujoukos, Director of the SEC’s Philadelphia Regional Office. “Nadal improperly received and failed to disclose millions of dollars in compensation.”

Nadal has since resigned and returned $11.285 million to the company. He also agreed to pay $1.85 million in disgorgement, plus $150,000 in interest and a $3.5 million penalty. He is also barred from serving as an officer or director of a public company for five years. 

Click here to see more of the latest news from the NYSSCPA.