4 ms·
The stock went up 8% on the day of the announcement, giving him a gain of under 400K pretax. This is a lot of money for mere mortals like us, but small potatoes
by danielrpa 6y ago
The stock went up 8% on the day of the announcement, giving him a gain of under 400K pretax. This is a lot of money for mere mortals like us, but small potatoes for the CEO of a major multinational company.
I find hard to believe he would risk an insider trading lawsuit over this amount, so my conclusion is that this was simply a prescheduled transaction. Have in mind that the increase will stick around for some time (stock still up ~8% since last week) so he would have benefitted anyway selling many days afterwards, or even weeks.
- boublepop 6y agoAssuming he pushed for the announcement to coincide with the preplanned sale he had absolutely no way of knowing how much the stock would potentially jump up. If a bank robber only manages to get away with 100 dollars because the register is low, you wouldn’t come out defending him saying “well the claim is he only stole 100$, and obviously no one would care about such a small amount, so we can conclude that he didn’t actually try to rob the bank”.