Stock is often used as a way to incentivize employees – not only do they gain crucial interest in the success of the company, they can also make bank if they do their jobs right. While share sales are normal, it is striking that top EA executives have sold off all their shares.
The markets have been doing well – EA stock hit five-year-high prices. Of course this prompted those with shares to sell and take some profit. However, It’s concerning that Patrick Soderlund, executive VP of the EA Games label, and the general counsel, Stephen Bene, sold off all their shares. Soderlund sold his 36k shares for over $1.2 million last Thursday, and on the same day Bene sold 7 771 shares to grab an easy $260k. Meanwhile, the second in command, Peter Moore, halved his equity in the company – he sold off 100k shares and took home a cool $3.4 million.
I have no problem with people selling stock. This is clearly the first available window within which executives are allowed to sell their shares – yes, corporations generally put restrictions on stock sales in times around financial results being released, or major announcements. With E3 just around the corner, it could just be the best time for these top dogs to grab some quick and easy money while the stock price is high. That said, it strikes me as extremely strange for three of them to be taking so much profit right now, especially to the point of selling off all their shares.
Could this mean that there will be a shakeup at the top of EA? Or perhaps there are some announcements coming at E3 and the executives are grabbing their cash now, just in case. Of course, we don’t know if EA is preparing to give executives even more stock after E3, bringing them back into the fold. Still, something doesn’t sit quite right about all these top-level executives selling off their shares in the company – what do they know that other investors don’t? Or, is it just yacht buying season?
Last Updated: May 13, 2014
Umar Returns
May 13, 2014 at 13:04
I need that cat
Alien Emperor Trevor
May 13, 2014 at 13:06
Heh. What big game are they releasing next?
Hammersteyn
May 13, 2014 at 13:09
It’s because EA plans a new twist in the next Star Wars game
http://d24w6bsrhbeh9d.cloudfront.net/photo/adNMr5V_460sa.gif
Alien Emperor Trevor
May 13, 2014 at 13:10
lol
HvR - THE Average GAmer
May 13, 2014 at 13:12
Mesa tappa your mama
HvR - THE Average GAmer
May 13, 2014 at 13:19
Or you get Jar-Jar in the stock standard game but there is $5 Dart Vader DLC pack.
Hammersteyn
May 13, 2014 at 13:21
LOL
Kensei Seraph
May 13, 2014 at 14:41
That could have made for an amazing scene.
Ultimo_Cleric N7
May 13, 2014 at 15:55
HAHAHAAA!!!! Win Hammer my man
VampyreSquirrel
May 13, 2014 at 13:09
Wish I had 100k shares in EA… I would have sold them all too… and then bought CDPR shares 😛
RinceBroken
May 13, 2014 at 13:14
I think they all hit the wrong button ‘sell stock’ instead of ‘sell golden horse armour’.
HvR - THE Average GAmer
May 13, 2014 at 13:15
Another difference between the “workers” and executives.
Executive get “normal shares” and can basically do as much insider trader as long as they do not go overboard and pull an Enron.
Employees get “special shares” which they can only sell if the company (executives) feels like like buying them back or if they leave their jobs.
Weanerdog
May 13, 2014 at 13:33
At EA the Employees just need to buy the “sell – DLC” before they can offload their stock.
Drizzt
May 13, 2014 at 13:23
Why is it odd? If the stock price is at a 5 year high then why wouldn’t you want to sell them?
You could then use that money to re-invest when the stock price goes down again or invest in something else? Or you could bank it, although I doubt they would do that.
I don’t think it’s a sign of anything. It’s just opportune.
HvR - THE Average GAmer
May 13, 2014 at 13:30
Just before E3?
If they were announcing something worthwhile at E3 the price will go up even more.
You do not sell everything when the price is high and climbing; you sell when you know it is going down.
Stephen Perry
May 13, 2014 at 16:27
You do if your financial advisers and algorithms tell you to.
InsanityFlea
May 13, 2014 at 13:28
Avoiding massive share price drops because battlefront will be just as bad as BF4. The execs have spoken.
MakeItLegal
May 13, 2014 at 13:34
Dogey as f.. Ck
Decembermaloy
May 13, 2014 at 13:36
Something Wicked This Way Comes
Kromas
May 13, 2014 at 14:03
E3 Reveals for EA will have a $5 cover charge (read DLC) per reveal. 🙂