Intel Says CEO Dumping Tons of Stock Last Year 'Unrelated' To Big Security Exploit (gizmodo.com)

An anonymous reader shares a report: Late last year, the CEO of Intel sold millions of dollars in company stock, as CEOs often do. The sale appears to have occurred while developers were reportedly rushing to fix a major security flaw affecting Intel processors made in the last decade. According to a report published by the Register this week, "a fundamental design flaw in Intel's processor chips has forced a significant redesign of the Linux and Windows kernels to defang the chip-level security bug." Windows and Linux developers have reportedly been working to address the issue since November. As our friends at Gizmodo ES pointed out, Intel's CEO Brian Krzanich sold roughly $11 million in company stock at the end of November. Counting the employee stock options Krzanich exercised, the CEO unloaded 245,743 shares, leaving him with 250,000 remaining shares -- the minimum Krzanich is required to own according to the company's bylaws, the Motley Fool reported. To be clear, this isn't proof of some insider-trading conspiracy. Contacted by Gizmodo, an Intel spokesperson called the sale "unrelated," and said it "was made pursuant to a pre-arranged stock sale plan (10b5-1) with an automated sale schedule."

Comments

Re:It's not a crime

[ranton]

It's not a crime because it's not a crime. If he would have waited until after the story broke he would have made more money of the sale of his stock, because the price is still higher than it was on Nov 29th. You need to personally gain to be accused of insider trading.

Re:It's not a crime

[smooth wombat]

You need to personally gain to be accused of insider trading.

That isn't entirely correct. One can do insider trading to prevent a loss as well as get a gain. The definition from the SEC:

Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.

The next paragraph relates to the current issue:

Examples of insider trading cases that have been brought by the SEC are cases against:

Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;

Government employees who learned of such information because of their employment by the government; and

Other persons who misappropriated, and took advantage of, confidential information from their employers

The link from the SEC