Employee Stock Options Expire while Freeze is in place?

Question

My company put a freeze in place for all employee stock option activities in July 2006 without advance notice.

I have less than 30 day to exercise my stock options or they will expire.

Does anyone know what my rights are if the options expire while the freeze is still in place?

My company's officers - including HR, Finance, and Legal have all said they cannot provide an answer and cannot provide any direction.

Help!

Eric

The company is Monster Worldwide (MNST).

The options are valuable -10 years worth of accumulated value - somewhere in the $25K range.

Monster did come under scrutiny for backdating options and hence froze the process.

Have gone to Managers, CIO, HR contacts, and even company legal contacts and they will not provide an answer on what will happen.

Does anyone know the best way to get a legal or SEC answer?

Thanks!

Answer 1

Is this perhaps the result of back dating options? That would be my guess. I expect the officers of your company are scared out of the minds that they are going to loose their jobs. Many already have. So you will will not get much help from that quarter.

I expect you will just have to sit tight and wait it out. Hopefully, everthing will work out ok for you.

Answer 2

Sounds like your company really sucks, is it even worth exercising them?

Logically, if there is an options freeze then it should also freeze your expiration date. I can't speak for every company but to do otherwise is quite specious.

I can't get over legal not being able to provide you an answer, i know they know(if competent), most of all i smell something really dirty. If your options have value i think somebody is trying to steal or deceive you out of them. There is a valid reason why the name 'Shyster' is used exclusively for them!

I would in your situation try contacting the SEC regarding your matter they should at least be able to provide the necessary documents so you can determine the facts at issue for yourself.

Answer 3

Options are an active employee incentive program, you buy options and improve your work so the company does better . . . HOW will you be doing that as an EX-employee ? Scandal is already hitting America over these option improprieties, sounds like you are trying another !

Answer 4

First it depends if they are call or put options. If you stand to make money try to excersize them, fi they expire anyhow it won't hurt to give it a shot. If don't stand to make money let them expire. May be worth asking your manager/supervisor or other boss, one would assume they would know or know who to ask.