So after reading about all of these nice ways for senior exec’s to diversify their concentrated stock positions here is my question: Is it ever disclosed when an exec for a public company enters into a completion portfolio or some other way of diversifying their portfolio? If not, isn’t this very misleading for investors who are looking for companies where management has ‘skin in the game’? If it is disclosed, then nevermind…
i don’t believe its ever disclosed…and this concept comes up in corp. governance as a way of misaligning shareholder and exec interests…
i think they must disclose as an insider sale if they go into a swap or variable forward sale and are no longer at risk…
3rd - That makes sense, I am thinking more about entering into these pools where the exec still has some exposure to the performance of their own stock, but is now diversified with the other stocks in the pool. I don’t think this type of arrangement is disclosed anywhere. So would this issue be fair game on an analyst call? Would management have any obligation (legal or otherwise) to answer truthfully?