SKX CEO behaviour

Having only recently started following this board I was wondering if Saul or one the other extremely knowledgable posters would weigh in on this article?

http://finance.yahoo.com/news/skechers-ceo-sells-74-million-…

In essence the writer raises what seem to me (not knowing SKX that well) some serious concerns…

Justin

15 Likes

As I just posted on RB:

If you look here:

http://biz.yahoo.com/t/30/711.html

You will see the full pattern of acquisition and disposal over the last few months.

I would be willing to bet a very good bottle of wine that these transactions (in and out) represent option exercise and disposition of the associated shares.

If I wasn’t so lazy, I might even research some 10Qs to find out what the option award numbers were.

Not sure who the original blogger at Gurufocus is or was, but my gut reaction is he should try to get out of his parents’ basement more often.

Cham

8 Likes

Aside from the CEO cashing in some very profitable options, I remember his success at LA Gear.

As I vaguely recall I think his salary was one of those $1 a year things, but rather than stock options he was also awarded something like 2% of sales right off the top or something like that. He was one of the top paid executives in the country for a few years until the trendiness of LA fell off.
So maybe he knows when to cash in when things are hot. Of course options sometimes have a time limit and must be exercised or they are lost.

JT