Leading Job Board Monster Names New Chief
In addition to replacing William Pastore as Monster's CEO, Sal Iannuzzi will remain chairman of the executive committee of the board, a position he's held since October.
Pastore, formerly COO of Monster, took the helm after Andrew McKelvey left in October amid an investigation into the company's options practices. In a statement, the company said the departure was “by mutual agreement.”
Iannuzzi previously served as CFO and CEO of Holtsville, New York-based Symbol Technologies, where he was credited with controlling expenses and strengthening the company's balance sheet.
Symbol was acquired by Schaumburg, Illinois-based Motorola Inc. earlier this year in a $3.9 billion deal. When the deal closed, Iannuzzi became president of Motorola's enterprise mobility unit.
In addition to being Monster's CEO, Iannuzzi will remain chairman of the executive committee of the board, a position he's held since October. The company has been struggling to regain traction since the backdating scandal started in July 2006.
Backdating means retroactively setting the option's strike price to a day when the stock traded cheaply. An option with a lower strike price is more valuable because it's less expensive to exercise. The practice is not necessarily illegal, but must be disclosed to shareholders.
In October, the company said it would have to restate its financial results from 1997 through 2005 after an internal probe found problems in a substantial number of its past options grants. Monster overstated its earnings by more than $250 million during that period.
In addition to McKelvey's departure, Monster's former general counsel, Myron Olesnyckyj, was terminated and subsequently pleaded guilty to securities fraud and conspiracy to commit securities fraud.
Monster's stock is down 13 percent from the start of the year, closing at $40.32 on Wednesday, April 11.
This story first appeared in Crain’s New York Business, a sister publication of Workforce Management.