CEOs Shed Stock After Bad News: Report

Law360, New York (July 31, 2006, 12:00 AM EDT) -- Corporate boards are at fault for not reporting why chief executives sell off so much of their company’s stock—especially stock options—when times get tough, according to a report on CEO stock sales from a corporate governance group.

While the report was far from alleging insider-trading, it drew a clear correlation between CEOs who shed large amounts of stock and companies that reported damaging news, such as litigation or violations of the Sarbanes-Oxley Act.

The report targeted CEOs who sold more than one-third of their stock in...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.