Rule 10b5-1 Plans Under Scrutiny: The Next Executive Stock-Timing Story.
Mondaq Business Briefing › Nbr. 2007, January 2007
Linked as:
Extract
Rule 10b5-1 Plans Under Scrutiny: The Next Executive Stock-Timing Story.
A recent academic study suggests that returns on trades by public-company executives under so-called "10b5-1" prearranged trading plans beat the market by significantly more than executive trades made outside of such plans. Although the academic study's findings may be attributable to a variety of factors, the United States Securities and Exchange Commission (the "SEC") is taking a close look at public-company executives' potential abuse of these plans, which are designed to give executives a "safe harbor" against insider-trading charges for prearranged equity trades. In view of this increased scrutiny, we urge public companies to revisit the requirements of Rule 10b5-1 and evaluate the other practical considerations discussed below for plans that are either already in place or curre...
See the full content of this document
Sponsored links
