Backdating an option means retroactively setting the option's strike price to a day when the stock traded at a different price.

Backdating an option means retroactively setting the option's strike price to a day when the stock traded at a different price. A call (buy) option with a lower strike price is more valuable because it's less expensive to exercise, while the inverse is true for a put (sell) option. The practice is not necessarily illegal, but must be disclosed to shareholders. In July 2006, the company said it might restate financial results for the year that ended December 31, 2005, and previous years to record additional noncash charges for stock-based compensation expenses relating to various stock option grants.

In September 2006, Monster suspended Myron Olesnyckyj pending the internal review irregular stock option grants. He had held the titles of senior vice president, general counsel and secretary.

On October 9, 2006 Monster named William M. Pastore, 58, chief executive after Andrew J. McKelvey resigned his posts as chairman and chief executive. McKelvey retained his seat on the board as chairman emeritus. The company said on October 25 that it found pricing problems in a "substantial number" of its past option grants, and as a result it expected to restate its results from 1997 through 2005.




On November 22, 2006 Monster terminated Myron Olesnyckyj, the company's lead lawyer, as part of its investigation into past stock-option grant practices. In a statement, the company said Olesnyckyj was terminated "for cause."

The U.S. Attorney's Office for the Southern District of New York has issued a subpoena to the company over options backdating, and a special committee of company directors has said it wants to complete its own investigation by the end of the year. The company has delayed filing its earnings results for the second and third quarters. Second-quarter results are expected December 13th. Third-quarter numbers would be issued "as soon as practicable," according to a November 7th statement from the company.

Monster Worldwide Inc. stated that it has received a notice from Nasdaq about a possible delisting of its shares due to the company's failure to file its third-quarter earnings report.

In April 2007 Monster named Sal Iannuzzi as chairman and CEO