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Restatement Sets Monster Back $339.6 Million

The amended financials are the result of the job board’s ongoing restatement related to the backdating of stock options over a six-year period.

December 21, 2006
Related Topics: Change Management, Ethics, Latest News
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Monster Worldwide’s latest installment in the stock option backdating scandal has resulted in a restatement of financials, reducing the company’s past earnings by $339.6 million.

The amended report, released December 13, is the result of an ongoing restatement from what the parent company of online job board Monster.com believes are “practices contrary to high ethical standards” that took place from 1997 through March 31, 2003.

In a related development, Hudson Highland Group Inc. announced Wednesday, December 20, that Monster’s restatement in its 2005 annual report to reflect stock option accounting will not have an impact on Hudson Highland’s reported operating results since its 2003 spinoff from TMP Worldwide, which is now known as Monster. Additionally, the company said Hudson Highland CEO Jon Chait, CFO Mary Jane Raymond and no past or current board members of the company were ever issued stock options by Monster.

Longtime CEO Andrew McKelvey resigned his post this fall and later withdrew from his chairman’s seat on Monster’s board of directors. McKelvey isn’t the only high-ranking executive at Monster to be affected by the backdating probe. In late November, the company fired Myron Olesnychyj, who was Monster’s senior vice president, general counsel and secretary.

Despite the fallout, Monster says the restated financials won’t hurt the company. Further, Monster announced it has received $533,046 from McKelvey—an amount that covers expenses Monster incurred between 1996 and 2006.

Also on December 14, Monster announced an expansion of its HR Alliance Program, adding Advanced Personnel System-SmartSearch Online, HRsmart, MrTed, JobAps, KBACE and Propellum. In total, Monster has 18 partners to help in a variety of recruitment functions via the HR Alliance.

Earlier in the week, the company announced a partnership with PayPal, a move geared to enhance services for smaller customers by facilitating payment transactions.

Gina Ruiz

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