Monster Inc settles with SEC for options backdating scheme

20 May 2009

Sarah Wilson

EU regulation

The Securities and Exchange Commission has settled with online job search portal, Monster Worldwide, Inc. for its multi-year scheme to secretly backdate stock options granted to thousands of Monster officers, directors and employees. Without admitting liability, Monster has agreed to pay a $2.5 million penalty to settle the SEC's charges that the company defrauded investors by granting backdated, undisclosed "in-the-money" stock options while failing to record required non-cash charges for option-related compensation expenses.

Monster's financial statements materially overstated its quarterly and annual earnings and was later required to restate its historical financial results for 1997-2005 to the tune of $339.5 million to account for additional non-cash charges for option related compensation expenses.

 The SEC had previously charged four of Monster's former executives, CEO Andrew McKelvey, President and COO James Treacy, General Counsel Myron Olesnyckyj and Controller Anthony Bonica, for their alleged roles in the backdating scheme. Treacy has since been convicted of conspiracy and securities fraud, in which he improperly backdated millions of dollars in stock-options awards. Monster now operates under new management.

For more information and to read the SEC's complain in detail, Click Here >>

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