CEOs Time Stock Gifts A Little Too Well (HMA)(MSM)
It looks like CEOs are timing stock gifts, especially those to their family foundations, a little too well
A study by a professor at New York University looked at 151 gifts over over $1 million between 2003 and 2005. According to The Wall Street Journal the study “finds that many donations to the family foundations occur just before sharp drops in the companies’ stock prices.” The professor told the newspaper “I think the IRS would take a dim view of altering a date of a gift in order to get a bigger deduction.”
Management mentioned in the article includes CEOs or past CEOs at Health Management (HMA) and MSC Industrial (MSM).
Douglas A. McIntyre