CEO Stock Gifts Look A Little Unsavory (IACI)(MER)(C)
It looks like CEOs may have found a new way to "game" the systems for giving and getting stock. According to a piece at Portfolio.com, chief executives are particularly adroit at the way they grant shares to their own family…
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It looks like CEOs may have found a new way to "game" the systems for giving and getting stock. According to a piece at Portfolio.com, chief executives are particularly adroit at the way they grant shares to their own family foundations.
According to the publication, a new study by David Yermack, a finance professor at New York University, showed "that four out of five stock gifts in the week before an earnings announcement were made right before a decline in the price of the stock."
The study covered donations by Sandy Weill of Citigroup (NYSE: C), Barry Diller of IAC/Interactive (NASDAQ: IACI), and Stan O’Neal of Merrill Lynch (NYSE: MER)
The study looked at gifts over a two-year period beginning in mid-2003. It will probably be nice bedtime reading for IRS agents.
Douglas A. McIntyre
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
