Mel Karmazin Files With SEC To Exercise Options On 30 Million SiriusXM Shares
August 31, 2012 at 6:35 AM (PT)
SIRIUSXM RADIO CEO MEL KARMAZIN has filed paperwork with the SEC, and will exercise options on 30 million shares and sell them.
NASDAQ released this statement regarding the move:
"SIRIUSXM RADIO INC. said THURSDAY that its CEO, MEL KARMAZIN, has adopted a trading plan for the company's common stock in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
The process is intended to facilitate KARMAZIN's personal financial planning strategy of asset diversification and liquidity, the company noted.
In accordance with the 10b5-1 plan, up to 30 million options to purchase SIRIUSXM shares will be exercised and the underlying shares will be sold into the marketplace. It is expected that the plan will become effective in, and sales thereunder may be made as early as, mid-SEPTEMBER.
Rule 10b5-1 allows corporate executives to adopt prearranged trading plans when they are not in possession of material, non-public information. Under the plans, company securities may be bought and sold under specified conditions over an extended period of time. The 10b5-1 rule allows individuals to gradually alter or diversify their portfolios while avoiding concerns that the transactions are occurring as a result of insider information."
It's expected KARMAZIN could net over $62 million if the stock sales average $2.50.