Miles Nadal to Pay Back $21 Million to MDC

By Erik Oster Comment

Former MDC chairman and CEO Miles Nadal, who stepped down last month amidst an ongoing SEC investigation into his finances, is in the process of paying back $21 million to the company, having already made an initial payment of $8.6 million, Adweek reports. In addition to Nadal’s salary, which in 2013 was $20.7 million (more than those of Martin Sorrell and Maurice Levy), the company reimbursed Nadal for personal expenses which the SEC said “lacked appropriate substantiation over the six-year period from 2009 to 2014,” including more than $1 million last year

The holding company has assured investors that the inquiry has has “no impact on the integrity of our current or previously reported financial statements” while new CEO Scott L. Kaufman has stated that MDC is working to “regain your trust.” Kaufman also claims that MDC has completed a deal to purchase the remaining 49 percent stake of agency 72andSunny.  MDC did disclose that it has racked up $3.9 million in legal fees due to the investigation, but hopes to see some of that reimbursed through insurance.

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