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SEC charges CEO with failing to disclose perks to shareholders

Joe Mont | May 12, 2017

A reminder—and warning —from the Securities and Exchange Commission: public companies must properly disclose perks, benefits, and other forms of compensation paid to CEOs and other highly compensated executive officers.  

On May 11, the Commission announced that the former CEO of a marketing company has agreed to pay $5.5 million to settle charges that his perks were not properly disclosed to shareholders.

According to the SEC’s order, shareholders were informed in annual filings that Miles S. Nadal received an annual perquisite allowance of $500,000 in addition to other benefits as the chairman and CEO of MDC Partners. But the SEC’s investigation found that without disclosing information to investors as required, MDC Partners also paid for Nadal’s personal use of private airplanes as well as charitable donations in his name, yacht and sports car expenses, cosmetic surgery, and a wide range of other perks.  

All total, Nadal improperly obtained an additional $...

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