TORONTO – Miles Nadal, founder of Toronto-based advertising group MDC Partners Inc., announced his resignation as CEO this morning amid an ongoing investigation by the U.S. Securities and Exchange Commission into executive pay and the company’s accounting practices.
Nadal has agreed to pay back $1.9 million in expenses and $10.6 million in salary and bonuses in connection with the investigation, and will not receive any severance or compensation for stepping down.
Chief accounting officer Michael Sabatino is also resigning, and will repay $208,000 in bonuses.
Scott Kauffman, previously a presiding director on the company’s board, will take over the top spot as chairman and CEO.
MDC Partners has investments in more than 50 advertising and marketing-related agencies in Canada and abroad.