Unity bosses sold stock days before development fees announcement::Unity executives sold thousands of shares in the weeks leading up to last night’s hugely controversial announcement it …

  • dangblingus@lemmy.world
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    1 year ago

    It’ll be my ignorance, but how are you allowed to own stock in the company you’re on the C-level of? Wouldn’t your direct control of the company, and the ability to buy and sell stock, be seen as insider trading?

    • Album@lemmy.ca
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      1 year ago

      Many company boards (of which CEOs sit at) have requirements where they must vest a minimum dollar amount into acquiring company shares. The purpose of this is to ensure they have an interest in the success of the stock and thereby the success of the company.

      These same companies will then additionally have blackout periods typically 30 days before the announcement of quarterly earnings where employees are restricted from selling shares.

      Not sure what unity’s board rules are but if they are a public company it should be in their investors materials, annual reports, etc

    • StarkillerX42@lemmy.ml
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      1 year ago

      If they own shares, then they want the company to succeed. A better question is “why are they allowed to sell those shares until they quit?” And the answer to that question is that everyone with enough power to change this also enjoys the current system.