"Goldman Sachs CEO makes $6.1M on stock options - The Associated Press"
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Goldman Sachs CEO makes $6.1M on stock options - The Associated Press
So...
Goldman's CEO made $6.1 million on a stock option exercise just before the expiration of the option. Shareholders and companies generally want option holders to hold on to the options, or underlying shares, as long as possible.
He could have made more than $15 million had he done this exercise in 2008.
With executive pay packages and the current media climate, is their a win-win situation for someone like this?
Should he have exercises earlier and held his shares? Should he have not sold his shares after the recent exercise?
Just wondering what others think about this.
Dan
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Not sure what the issue is here. The options were probably granted 10 years ago, and exercised, in full compliance with numerous regulatory rules, as most stock options for public companies are. Section 16 officers of any company often have access to non-public information, and are also subject to company blackouts, which would preclude exercising any time they want. As you state, he held the option as long as possible before exercising, and assumed the market risk of the stock price since vesting. And with Federal, State, Local, Social Security, and Medicare taxes (not to mention sales taxes on whatever he purchases with the proceeds) he probably got less than half of the value. Let's allow what's left of the free market in this country operate--and let those who earn income decide what to do with it and keep more of it.