https://www.sec.gov/Archives/edgar/data/93410/000112760224027549/xslF345X05/form4.xml
Absolutely not a good sign at all.
11 replies (most recent on top)
Executives get paid mostly in stock options instead of salary for more favorble tax benefits. Im no tax man, but im guessing it's treated as longterm capital gains (~15%) vs upper federal tax bracket (~40%). If he didnt hold this 1 year, I think short capital gains is 25%, still better than 40%. Pretty standard. Warren buffett said his secretary pays a higher tax rate than him.
Before anyone looks at the discrepancy in tax rate and makes an outcry, look at other figures too. The top 1% pay 45.8% of fed income tax according to Cato institute who cited irs data, so perhaps they're paying their fair share.
He disposed of shares after the exercise except retirement savings, so the man got his exec style paycheck is all.
@2ivd+1vB6pPfR: Do you even know what options are and how they work? Executing options is directly equivalent to chasing your paycheck: Greedy? Nonsense. Now if you wish to argue the Sr. executive compensation in the USA is ridiculously high relative to the rank and file, then I might agree. Suggesting that executives cashing their paychecks (however their compensation is structured) is “greedy” is just stupid. So you send your check back to the corporate office each month I assume?
Hmmm. All the HR posters here seem to rationalize that because senior management makes oodles of money every year cashing in options, that is somehow "normal" and "good". Please don't hit me with those "you'd do it too" responses. Greedy behavior is still greedy behavior.
He also dumped a load into Cramer at the Anchor.
I'd like to get a few options. Please send some my way.
Complete load of nonsence. He executed his expiring options. This is not news! It was a "use it or lose it" for him! I am sure he will excecute a simular load of options next year.
Perfect time to drop the upcoming announcement - after selling stock, before options expire, perfect deniability, stroke of genius
This is normal every year. Of course he would sell his options from 10 years ago when stock price was way lower than it is today.
If you read the document it shows they are stock options that were set to expire on 1/28/25. It makes sense he would exercise his options 🙄
That, my friend, is the hallmark of someone who knows his days are numbered.
Well, legally, the ceo can't sell his shares based on info that isn't publicly available. So I don't know that this is the red flag you think it might be. Otherwise he'd be opening himself up to charges being brought against him for insider trading.