Perk Disclosures: Reminders for Executives and Directors

The lesson from this: If you’re going to have your corporation underwrite your cosmetic surgery, remember to declare it as a perk and part of your executive compensation.

The investigation into the perks, personal expense reimbursements and other items of value received by Mr. [Miles] Nadal [of MDC Partners, Inc.] or his management company from 2009-2014 ultimately revealed that Mr. Nadal received far more benefits than were disclosed in MDC’s proxy statements—ranging from sports car and yacht expenses to cosmetic surgery to charitable donations in his name—totaling nearly $11.285 million, which Mr. Nadal also repaid to MDC. On May 11, 2017, without admitting or denying the SEC’s findings of securities law violations, Mr. Nadal consented to an SEC cease-and-desist order and he agreed to pay $1.85 million in disgorgement, $150,000 in interest and a $3.5 million penalty. Mr. Nadal also agreed to be barred from serving as an officer or director of a public company for five years.

Source: Perk Disclosures: Reminders for Executives and Directors

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