Some of the top managers at Ameritrade, Internet firms broker to sell their shares in the firm. Why sales managers, as this will affect the shareholders, and that the Director General should do? The Director-General is concerned that the market will interpret managerial sales as a signal that managers believe that companies should be re-evaluated. He also wonders whether the sale could thwart the company to raise funds in the capital markets. Finally, he thinks that, as a minimum, such sales undermine elaborate compensation plan that pays managers stock options to align the incentives of managers with those of shareholders. "Hide
by Lisa Meulbroek Source: Harvard Business School 18 pages. Publication Date: April 6, 2000. Prod. #: 200057-PDF-ENG
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