Monster Pays $2.5M in Options Backdating Settlement
It was announced recently that Monster Worldwide, parent company of the online job-search site Monster.com, agreed to pay $2.5M to settle allegations that they engaged in secretly backdating options for executives and employees. Monster Worldwide admits nor denies any wrongdoing in the matter.
In 2006, Monster Worldwide restated its results for 1997 through 2005 by a cumulative pretax amount of $339.5 million, to record additional noncash charges for options-related compensation expense.
“This is an important step in closing an unfortunate chapter in the company’s history and putting the issue firmly behind us,” said Sal Iannuzzi, Monster’s chairman and chief executive, in a statement. “Our current executive team has spent the last two years refocusing Monster on its customers and shareholders, retooling the day-to-day management, and overhauling governance in an effort to adhere to the highest standards.”
Backdating options is not illegal, it was the fact that they didn’t report it that made it an offense.
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