TheStreet.com, an online journal for investors, is looking for the hidden motive today behind the systematic sell-off of stock by Autodesk CEO Carol Bartz. According to TheStreet.com, Bartz is selling 50,000 shares of Autodesk stock weekly.
The stock sales are automatic, and conform to a Securities and Exchange Commission rule for insider trading, known in the market as a 10b5-1 plan. TheStreet.com notes that the pace has accelerated, from a low of 10,000 shares a week in 2003 to the current 50,000. Bartz holds approximately 5 million options on Autodesk stock.
The article quotes several analysts as to why someone in Bartz’s shoes executes an automatic sell-off of this size. One of the analysts quoted knows so little about Autodesk, he refers to Bartz as “he.” Given Autodesk's excellent performance in the stock market in the past year, and given that many of Bartz's options have execution deadlines, the current stock sales rate seems prudent.
-- RSN
Autodesk Carol Bartz Autodesk stock