Earlier this week MDC Partners’ Miles Nadal quietly stepped down from his role as CEO with the holding company of such agencies as Kwitten, kenna, and Veritas amid a amid a probe by the U.S. Securities and Exchange Commission (SEC) into Nadal’s expenses. He was replaced by board member Scott Kauffman, an MDC board member.
According to the release:
In connection with the ongoing SEC investigation, Mr. Nadal has agreed to repay to MDC Partners all expenses that were requested to be repaid by the Special Committee of the Board of Directors, including an additional $1.88 million that was recently identified. In connection with his retirement, Mr. Nadal is required under the Company’s Incentive/Retention agreements to repay $10.58 million in retention amounts received between 2012 and 2015. In addition, Mr. Nadal is not eligible for any compensation payments or severance.
The Company also announced that Michael Sabatino, formerly Chief Accounting Officer of MDC Partners, has resigned. Mr. Sabatino has agreed to repay the Company $208,535 in cash bonus payments received between 2012 and 2014.
The Company does not expect there will be any material impact to its previously issued financial statements as a result of these additional repayments.
The Company today is also reaffirming its annual financial guidance and, based on a preliminary review, believes its second quarter 2015 results are tracking consistent with internal expectations. The Company will announce its results for the period ending June 30, 2015, on August 6, 2015.