"Monster Worldwide Gave Officials Options Ahead of Share Run-Ups"
The Wall Street Journal runs an article today that largely explains the precipitous freefall in Monster shares over the past 2 weeks, titled "Monster Worldwide Gave Officials Options Ahead of Share Run-Ups":
The operator of job-search Web site Monster.com frequently granted options to top executives dated ahead of sharp run-ups in its share price, raising questions about whether the grants were backdated or otherwise timed to boost their value to the recipients. The findings, gleaned from securities filings made by New York-based Monster Worldwide Inc., come amid a widening scandal over the timing of executive options."
Monster Worldwide has scored low on corporate governance from major ratings agencies, and some perceive the Board as a rubber stamp for the entrepreneurial genius Andy McKelvey.
Andy has survived all sorts of turmoil at the company -- the share decline from 2000 highs, a margin call that saw 1/3 of his holdings get taken away, management change, etc. But this is the first time he has faced legal trouble, and it is the type of trouble that gets very, very serious, very quickly.
The new team at Monster has been great at putting the company on the right footing, so we'll have to wait and see how this pans out....
