Date Insider Name Title Buy/Sell No of Shares Avg Price Total
5/18/2023 Khandpur K Ashish Insider Sell 9,432 $99.27 $936,314.64
9 replies (most recent on top)
"RSUs are taxed when they vest."
I promise you RSUs are not on a 2.5 month vesting schedule.
"Ashish sold 33% of his total shares. He sold the RSUs he just received in February of this year meaning they will be taxed at his ordinary income tax rate. He'll pay 37% tax rather than 20% or roughly giving the gov't $80k extra from the sale. I don't know why he did it but it is a signal."
Not exactly. RSUs are taxed when they vest. They sell a portion of it to cover withholding. So if you were shown as getting 100 RSUs, 3M/Fidelity would sell 20 to cover taxes and you would get 80 issued in your account as a rough example to illustrate. Then the taxes you pay start with the basis on the date of issue/vesting and this Feb it was like $117/share, so he took a short term loss of $-18/sh on the RSU shares he sold from Feb. by selling at $99/share. This did not generate a tax bill for him.
Our financial advisor has said they typically recommend you sell any RSUs you get immediately both to reduce over-exposure to your employer and to avoid tax issues by selling before the price changes much, so he would seem to be following similar advice.
As to whether you can consider this a bad sign or not, I don't really know. The execs get paid a lot in shares, so you expect them to sell some from time to time. If this is excessive vs his past behavior, then you could perhaps say it is a sign of no confidence but I haven't looked up any of that.
What this means is rather simple.
In contrast to what they preach at Town Halls that everything is well and good in 3M and we have a bright future, they know very well the current dire situation and the cesspool that they have created.
Hence the selling of a chunk of shares at double digit prices to salvage something before share prices dive down even further.
3M shares have only one way to go, and that is downwards. That is the message folks.
As someone has wisely said many a times before .......follow the money
To state this isn't news & just a regular exec stock transaction is rather naïve.
Ashish sold 33% of his total shares. He sold the RSUs he just received in February of this year meaning they will be taxed at his ordinary income tax rate. He'll pay 37% tax rather than 20% or roughly giving the gov't $80k extra from the sale. I don't know why he did it but it is a signal.
I sold all mine when 3M decided not to stick up for it's employees during the Pandemic. I refuse to support a company like this. I'll invest my money elsewhere.
They must notify that they will be selling prior and when. I dont know all the rules but SEC is involvef
This isn’t news. Exec mgmt sells stock all the time and is highly scrutinized by the SEC when they do. They have to pick a date or a price sometime in he future that doesn’t conflict with earnings reports and sell it (almost) blind. I’m guessing Ashsh pricked this date months ago.
Someone correct me if this is not accurate.
Wait until you see the shares to be dump by Vale
Sold almost 10,00 shares at $99.27 this week!