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It’s like trading windows and blackout periods for employee RSUs, but equity selloff on a schedule for the c suite.
by darth_avocado 2y ago
It’s like trading windows and blackout periods for employee RSUs, but equity selloff on a schedule for the c suite.
- hackitup7 2y agoThat's not quite how it works. Certain people are required (or strongly encouraged) to sell on a 10b5-1 plan. These plans can trade outside of open trading windows, but they have a meaningful cooldown period before they go into effect and can only be entered into during open trading windows. So it's not necessarily "better."
- jahewson 2y agoThat’s really about not falling foul of insider trading laws. Regular employees are free to set up limit orders within their trading windows (eg sell if stock hits $200) if they want. Can’t subsequently cancel it though! It makes way more sense to just sell on the day of vesting and then trade shares that you’re not restricted from trading. No tax or other reason not to do this.
- throwbigdata 2y agoI’ve never worked at a public company that allowed limit orders to survive blackout periods.
- nick7376182 2y agoI believe they are referring to a 10b5-1 plan that includes price-based sale triggers.
- lupire 2y agoRegular employees can also make scheduled trading plans. ETP.
- vonmoltke 2y agoWe couldn't at Twitter, which is the only company I've worked at that had a blanket trading blackout policy. The closest we could do was elect to sell all RSUs as soon as they vested (even if outside an open window).