Ram, regarding Joe Horning, his selling, and his options.
He filed to sell 60,000 shares today. Assuming he sells these at an average price of $30, that is $1.8 million.
The proxy statement indicates he was awarded about 53,000 options with excercise prices varying between $3.75 and $6.31. Haven't bothered to calculate the average excercise price but assuming it is $5, it would take about $265,000 to excercise all the options.
So it is clear that Mr. Horning is taking a big chunk (>$1.5 million) off the table, not just raising money to exercise options. Nothing wrong with that, of course, Mr. Gates does it all the time, as does practically every other officer of any technology company. Of course, given what happened in the 1993-94 period, the officers of this company probably should be a bit more conservative in selling off their stock than the average company. Particularly before the company has proven they have the fundamentals to support today's lofty valuation. |
