Exact(7)
The company needed stock for options exercises, employee ownership deals and acquisitions.
A small number of companies -- including Cysive, a software company -- erased history by canceling options exercises that some employees had made.
Mulford counted only shares bought back to undo the effects of options exercises, as opposed to, say, the effects of convertible bonds.
Companies pay huge sums to buy back stock and reverse the watering-down of earnings per share caused by employee options exercises.
Insider sales, on options exercises or not, are sometimes seen by shareholders as a reason why they should also sell, viewing insider sales as a red flag about a company's financial future.
Musk owned 26.5% of Tesla as of Dec. 31 (though share issues and options exercises have changed his holdings slightly) and 22.2% of SolarCity as of March 31.
Similar(53)
Coyne, too, benefited from massive share options exercising 2.4m options for $95.7m.
The executives can sell only enough shares to pay for the options' exercise and to pay taxes on the transaction.
Edward Mendlowitz, a partner at Mendlowitz Weitsen in New York, advises investors to consider using some losses to offset gains in incentive stock options exercised this year.
At most companies, executives can lock in gains by selling stock immediately after buying it through an options exercise, eliminating any financial risk for them.
gets premium options exercise price well above market.
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