Though it remains unclear exactly which of MDC Partners CEO Miles Nadal's personal expenses are being probed by the SEC, a recent corporate statement sheds some light on his company-subsidized lifestyle.
In October, the SEC requested information about MDC reimbursements for Nadal's medical expenses, travel and commuting costs, along with charitable and other unspecified expenses, all of which reportedly "lacked appropriate substantiation over the six-year period from 2009 to 2014."
According to the holding company's 2015 proxy statement, a document required by the SEC to keep investors informed of financial details, Nadal received $926,005 in company-paid expenses last year to help support his Bahamas-based lifestyle.
Of that, $500,000 was for unspecified perks. Another $91,038 went toward Nadal's personal use of aircraft, including travel between his residences in the Bahamas and West Palm Beach, Fla., and MDC's corporate office in New York, as well as travel to business events. When Nadal previously included family members in his business travel, he didn't pay for them. Under a new aircraft usage policy, Nadal is required to reimburse MDC for travel by any of his family members.
The company also paid $263,000 in legal fees for Nadal, incurred in connection with the secondary offering and sale of 3.5 million MDC Class A shares by the CEO in 2014, according to the MDC proxy.
Additionally, MDC funded Nadal's personal use of a corporate apartment to the tune of $71,967 when he was in New York last year. The company paid for 50 percent of the lease and 100 percent of the utilities, local phone charges, cable and internet costs for an apartment that cost $54,172 in expenses in 2013 and $50,160 in 2012.
MDC is a holding company that includes several high-profile agencies, including Crispin Porter + Bogusky, 72andSunny, Kirshenbaum Bond Senecal + Partners, Doner, and Laird & Partners.