On May 11, 2017, the former head of MDC Partners, Inc. (MDCA), a NASDAQ-traded marketing firm, entered into a settlement with the Securities and Exchange Commission (SEC) to pay a $5.5 million fine arising from a years-long pattern of executive compensation disclosure violations. While MDCA already agreed to pay a $1.5 million SEC settlement earlier this year[1] in relation to these violations and cooperated with the SEC in its investigation, this most recent order pertains to its former President, CEO and Chairman, as an individual.

Companies registered under the Securities Act of 1933 or Securities Exchange Act of 1934, as amended (Exchange Act) are required to report certain executive compensation in accordance with Item 402 of Regulation S-K.[2] While salary, bonus, stock options and other more traditional benefits often comprise a large proportion of this reported compensation, perquisites (or “perks”) also need to be disclosed. READ MORE