Nadal Out: New Controversy Surrounds MDC Partners Director Irwin Simon
MDC PARTNERS SCANDAL: NADAL OUT, NEW CONTROVERSY SURROUNDS MDC DIRECTOR IRWIN SIMON OF HAIN CELESTIAL
On Monday evening, after market closing it was announced that Miles Nadal has stepped down his CEO and board position at MDC Partners as Everything PR reported earlier today. There is an ongoing SEC investigation, Nadal is repaying MDC $8.6 million, and will also “repay $10.58 million in retention amounts received between 2012 and 2015, and he is not eligible for any compensation payments or severance”, according to The Wall Street Journal. Time will tell whether Nadal and any other executives are indicted or further action is taken.
MDC’s spin-filled press release had a one-liner which noted that “Irwin Simon, a current member of the Board, has been appointed as MDC’s Presiding Director.” Does this company do ANY due diligence?
Mr. Simon’s Hain Celestial employs a number of independent marketing, advertising and PR Agencies. That should be a major issue for the director of one of the world’s leading publicly traded ad marketing & PR firms. Simon employs competitors of MDC.
Visit the site of Celestial Seasonings, and witness front and center on the page that media inquiries should be directed to: Rob Eiseman of Blue Chip Marketing Worldwide. Blue Chip Marketing Worldwide on their website proudly proclaims themselves as “..an independent, fully integrated, global marketing company that unites with healthcare, retail and brand marketers to achieve remarkable business results.”
How do MDC owned firms like Allison & Partners, Sloane & Company, & Kwittken feel about the fact that the big new MDC boss hires their competitors?
They aren’t alone – in the digital arena, Hain Celestial proudly enters awards with ICED Media. As their site lets us know, “ICED Media is the best-in-class, full-service digital agency positioning global and Fortune 500 companies and brands at the forefront of consumer adoption and emerging technology.” Digital companies like 72 & Sunny and Vertitas must feel super confident in the new MDC director entering awards with competitors.
Brand Initiatives, an independent branding agency worked with The Hain Celestial Group recently to “Define optimum positioning based on new consumer insight to revitalize a major beverage brand.”
Perhaps the good news for MDC Partner companies is that none of them are involved in the labeling issues which exist at Hain Celestial, and for which they recently “failed to persuade a federal judge to dismiss a lawsuit accusing it of deceiving consumers into overpaying for its Earth’s Best baby food, infant food and baby and home care products by falsely labeling them “organic” or “all natural.””
An industry insider who tipped us off to this story tells us, “”MDC Partners agencies have executives fuming. Nadal has apparently taken millions, there is an ongoing SEC investigation, and today the stock hit a 52 week low. Now the new directors’ billion dollar company employs independent ad agencies, pr companies and marketers is a terrible message to send to the market. Does executive management now have talent in the companies owned by MDC?
It is baffling that Irwin Simon’s Hain Celestial would have his company spend in a major way with MDC competitors,” said a leading agency owner who asked not to be identified.
“Award winning agencies represent the director of MDC Partners – this is not something one would see at ad conglomerates like Omnicom, Interpublic Group or serious players. Has to feel real good after Nadal cheated you.”