MusclePharm Executives Voluntarily Returning Bonus

MusclePharm Executives Voluntarily Returning Bonuses Of Stock And Cash

DENVER, July 12, 2012 /PRNewswire/ -- MusclePharm Corporation (OTCBB: MSLP), a nutritional supplement company focusing on active lifestyles, today announced that three of its senior executives have voluntarily agreed to return stock and cash bonuses received for 2011 and have relinquished 2012 bonus accruals associated with their existing employment agreements. The 2011 bonuses were based in part on revenue growth that the company determined recently had been incorrectly calculated.

In May 2012, MusclePharm, along with its auditors, revised the methodology for accruing revenues to more accurately portray the company's operations. Following the revision, gross revenues were restated downward for certain prior periods, including the year ended December 31, 2011. The three executives have volunteered to reduce both the cash and share amounts awarded for 2011 based on the restated revenue amounts, as well giving up such bonuses accrued for 2012. In total for 2011, the executives are returning 79,071,984 shares of MusclePharm common stock and giving back cash bonuses aggregating $90,000. No other executives received or were entitled to any such bonuses.

John Bluher, Chief Operating Officer of MusclePharm, said, "These prompt and voluntary actions demonstrate our officers' commitment to the company. We will be seating a reconstituted board very soon and will seek in the near term to enter into new compensation agreements with all of our executive officers, subject to review and approval by independent board members. The new contracts are expected to align executive compensation at the company with growth of our margins and net income."

http://www.reuters.com/article/2012/07/12/idU...RN20120712