Another Busted on Backdating BS

The stock option backdating issue continues to flare up. The AP reports that former Monster executive vice president , Myron Olesnyckyj, pleaded guilty to securities fraud and conspiracy to commit securities fraud in an extensive stock options backdating scandal. The report says:

Monster went public in 1996. After that, Olesnyckyj said, he and others agreed to backdate annual companywide stock option grants, choosing the dates of the grants after looking at the historical records of the company’s stock price movements. Backdating involves issuing stock options retroactively to coincide with low points in the share price, thus boosting payouts. It can be illegal if it is not properly accounted for and disclosed to investors.

This issue isn’t over by a long shot. And it sure-as-heck isn’t going to be fixed with more vision, mission, and values statements. This whole thing is about doing the right thing. Or, in this case, not.

Posted on February 16, 2007 by Frank Roche
Filed Under Business, Companies, Legal