(Not related to Zoom. ZI a different company)
Noted that the CEO and COO and a couple of large holders of stock have been taking options and immediately selling huge chunks of the stock (+/- $20 Million) Is this common among young companies or a cause for concern? Maybe this just what venture capitalists do, but it does not inspire confidence along the lines of insider commitment.
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Noted that the CEO and COO and a couple of large holders of stock have been taking options and immediately selling huge chunks of the stock (+/- $20 Million) Is this common among young companies or a cause for concern? Maybe this just what venture capitalists do, but it does not inspire confidence along the lines of insider commitment.
Source? Link? Hearsay? FUD? You need to provide something other than unsupported accusation, please
🆁🅶🅱
post tenebras lux
For not in my bow do I trust, nor can my sword save me.
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This same questions pops up a lot for a lot of companies.
Executives get options as part of their pay packages. When they vest, they are income. They need to pay income taxes. Most executives I know sell all or enough to pay the taxes when they vest. I had one exec friend who didn’t sell. Stock tanked, and he had no money to pay the tax bill.
So, yes, executives routinely sell their options when they vest - to pay taxes, pay for their lifestyle etc. Non-founder execs treat options as part of their compensation (because that is what it is). Founders on the other hand may be able to retain options, but most of the time they have vast amounts of stock remaining in the company.
I haven’t even looked at how much the CEO of ZI retains, but I bet these sales (even though perhaps $20 million) are insignificant compared to his retained holdings.
Mike
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