Dorine, here is one example of the "cost" that is not reported:
Claudine Malone, director, exercised an option for 278,400 shares of common between $0.58 and $18.52 each from Sept. 9 to Sept. 11 and sold 220,800 shares between $55.06 and $60.00 each from Sept. 9 to Sept. 11 and now directly holds 177,600 common.
Assuming that the average exercise price was $9.55, and the prevailing price on the day of exercise was $57.78, then the hidden cost to the company (that's you and me and all of the other shareholders) is ($57.78 - 9.55)*278,400 = $13,705,632.
Now try repeating this for all of the insiders over the year, and you will see why I am upset at this. By the way, $13.7 MM is pretty exorbitant as a director's fee, don't you think?
TTFN,
CTC |
