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Pete Baldwin 1/5/2013 | 2:03:25 AM
re: CEO Chambers Selling Cisco Shares

Not a bad late-Friday catch, but I wonder if Phil's Overture scoop takes the prize as the bigger Friday news haul.


(Google also invested more in 23andme, for those who care about such things.)

paolo.franzoi 1/5/2013 | 2:03:24 AM
re: CEO Chambers Selling Cisco Shares

Craig,


You have one mistake.  A CEO is ALWAYS in possession of Material Non-Public Information.  Plans are set to start usually a quarter in the future and must be followed or stopped with a delay then to start another plan.  The idea of a selling plan is that it is mechanical.  It can be simple or complex (the formula for selling shares) but it can not be a choice.  So, most of the time a 1q delay before the start represents being out of touch with the material non-public information for 90 days in the future.


These plans are basically for all C level and other registered executives, who I said are ALWAYS in possession of material non-public information.


seven


 

paolo.franzoi 1/5/2013 | 2:03:24 AM
re: CEO Chambers Selling Cisco Shares

 


Craig,


You are missing the subtlety.  The idea is that a plan is put in place before it can be used so that Chambers does not theoretically have material non-public information today about Q2 next year.  He DOES have material non-public information about this quarter.  So, the idea is that the delay in the start of the plan makes the current set of information public by the time the plan goes into execution.


So, again the whole idea of the plan is file now - delay - execute plan.  The delay is supposed to either make public or non-material the information held today.  But both now and 2 quarters from now Chambers has material non-public information.  He just (theoretically) does not have material non public information that far in the future.


seven


 

Pete Baldwin 1/5/2013 | 2:03:24 AM
re: CEO Chambers Selling Cisco Shares

So true, Seven. Thanks. The part about "material non-public information" is the SEC's wording, not mine, so maybe I should have put quote marks around it. Whether such a thing is practical or not, well... talk to the SEC...  :)

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