Jon,
Great post and great observations. I too got a little closer to this, did some research and was somewhat alarmed at seeing these sales.
Then I found something else out about the compensation model for the executives and directors - they are routinely (annually?) awarded stock, and with those awards comes a multi-year vesting period.
The stock they sold was held through multiple years of vesting and I can’t say I blame them for selling to reap some of the rewards.
Some of those folks (like David) have been patient for over a decade. Others have put in their 6-7 years. The good news (or bad news?) is that there is more that can be awarded. It is part of their comp model.
Now, I don’t know if the knowledge of stock based compensation sits any better, but it does at least align their interest with ours. It is unfortunate they felt the need to sell, but again I can’t say I blame them. The competition in this market is fierce and they put in a grueling number of hours in to stay in the game. I view this last round as a reprieve; a breather to take in some of what they earned. One has to enjoy life, too.
Appreciate thoughts from others on this topic. The comp model they have going is one of the drawbacks of owning this stock.
Best,
–Kevin