Be the first to like this
Presentation illustrates that companies are using insertions into their Insider Trading Policies to diminish the value of employee stock options. This provision is inserted into the Insider Trading Policy to intimidate the employee from managing his/her ESOs optimally. There has never been a case filed against a person selling calls or buying puts to reduce risk. Every case that was filed against employees for violation of Rule 10 b-5 which involved employee stock options was a result of using the strategy or early exercise, sell stock and diversify.