RealTime IT News

Monster Adds Options Investigator to Board

Web job placement firm Monster Worldwide  named Phil Lochner to its board of directors.

Lochner will join the board's Special Committee, which was created by Monster Worldwide's board of directors in order to investigate the company's historical stock-option practices.

He will also serve on the Special Litigation Committee formed to address issues related to the company's civil litigations.

Monster took a $339 million charge earlier this month and admitted that former employees had "intentionally" recorded fraudulent stock-option grant dates between 1997 and March 31, 2003.

The company said that the Special Committee is in the final stage of its investigation of those activities and is preparing remedial recommendations it expects to present to Monster's full board during the first quarter of 2007.

Lochner served as a commissioner on the Securities and Exchange Commission (SEC) from 1990 to 1991. Monster Worldwide spokesman Rich Teplitsky told internetnews.com that his SEC experience "was one positive, along with his other excellent public company experience."

Lochner serves as a member of the board of directors for several public companies, including Adelphia Communications and CMS Energy .

His other board experience includes sitting on committees that oversee audit, compensation and corporate governance functions.

"When Philip Lochner was identified, Monster quickly saw him as the perfect fit," Teplitsky said, adding that the company had been looking to fill a board seat for the past couple of months.

Andrew McKelvey, who stepped down as CEO on Oct. 9, resigned from the company's board of directors on Oct. 30.

The company also caught up with its SEC deadlines today, filing its quarterly report for the quarter ending Sept. 30, 2006.

The board approved cash payments to certain former employees not involved in the options review to compensate for approximately 230,000 vested options that expired while the company's stock-options plan was suspended during the period that the company was not current in its SEC filings.

The company expects to record a one-time expense of approximately $5 million during the fourth quarter of 2006 in connection with these payments and associated payroll taxes.