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Executives cashing out their stock right before their company fails seems pretty self-evidently bad. Captains go down with their ships, they shouldn’t be the fi
by fwlr 4y ago
Executives cashing out their stock right before their company fails seems pretty self-evidently bad. Captains go down with their ships, they shouldn’t be the first people on the lifeboat.
- jiveturkey 4y agoTFA is about bonuses, not stock. Stock sales were (as is usual) automated and scheduled. Executives simply cannot have discretionary "day of", impromptu kind of stock sales. But even the bonuses were on a scheduled calendar. That said, it's possible they kept the ship afloat just a little longer, to make sure those payments occurred first. /Then/ they took on the risk of a cap raise. I'm not saying that happened. I haven't studied it closely enough. For me what's more worrisome is the incestuous relationships.
- deleted 4y ago[deleted]
- dokein 4y agoIn this particular case, the stock sales before collapse were 'scheduled' just weeks before the sale, as opposed to many normal circumstances when it's scheduled months or even years in advance: "The sale of 12,451 shares on Feb. 27 was the first time in more than a year that Becker had sold shares in parent company SVB Financial Group, according to regulatory filings. He filed the plan that allowed him to sell the shares on Jan. 26." [1] [1] https://fortune.com/2023/03/10/silicon-valley-bank-ceo-greg-becker-3-6-million-stock-sale/ https://fortune.com/2023/03/10/silicon-valley-bank-ceo-greg-...