Politico has the article ‘Eye-popping’ payouts for CEOs follow Trump’s tax cuts.
In a speech last month, the SEC’s Jackson said, “There is clear evidence that a substantial number of corporate executives today use buybacks as a chance to cash out the shares of the company they received as executive pay.
“In fact, twice as many companies have insiders selling in the eight days after a buyback announcement as sell on an ordinary day,” he said.
This is information I have been looking for. I have been wondering what the insiders are doing with their stocks when their companies have been buying it back. I couldn’t figure how it would benefit them in the long run if they stripped away the company’s future prospects.
Why do the insiders wait a day to trade if they know the buyback is coming? If they bought before the buyback was public knowledge, that would be illegal trading based on insider knowledge. This is the crime for which went Martha Stewart to prison.