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In its filing on Wednesday, Monster said the company is revising its disclosure of related party transactions as a result of its investigation into transactions between the company and Mc Kelvey or individuals affiliated with him.Mc Kelvey recently reimbursed the company 3,046, which includes interest, for expenses paid by the company from 1996 through 2006.

The roots of the scandal date back to 1972, when an accounting rule was put in place permitting companies to avoid recording executive compensation as an expense on their income statements so long as the income was in the form of stock options that were granted at a rate equal to the market price on the day of the grant, often referred to as an at-the-money grant.This enabled companies to issue enormous compensation packages to senior executives without notifying shareholders.


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