Zuckerberg Pledge Helps Facebook StockBy: Chris Crum - September 6, 2012
Yesterday, news came out that Facebook CEO Mark Zuckerberg has pledged not to sell any Facebook shares for at least a year. In addition to that, Board members Marc Andreessen and Don Graham will not sell any shares, other than what they may sell to cover taxes on RSUs.
This information came from an 8-K document filed with the SEC.
Facebook shares were up 5% at one point on Wednesday, following the news. As of the time of this writing, shares are at $18.81, up 1.24%.
“We have adopted an ‘Insider Trading Policy’ that governs the trading of our securities by our directors, officers, employees and consultants,” the company said in the document. “Pursuant to the terms of that policy, all of our executive officers, as well as other members of our senior management team, are required to conduct any purchase or sale transactions in our securities through atrading plan established pursuant to Rule 10b5-1 (‘Rule 10b5-1 Plans’) under the Securities Exchange Act of 1934, as amended. Under the company’s current policies, Rule 10b5-1Plans can be entered into only during an open trading window and are subject to a ‘cooling-off’period before any sales or purchases may occur pursuant to such a Plan.”
“We understand that two of our non-employee directors, Marc Andreessen and Donald Graham, intend to satisfy taxes incurred in connection with the vesting or settlement of their RSU awards by effecting sales of our common stock,” the document continued. “Any such sales will be conducted through Rule 10b5-1 Plans adopted in accordance with our securities trading policies.Other than such tax-related sales, Mr. Andreessen and Mr. Graham have no present intention to sell any shares of our common stock held by them personally.”
“As of the date of this report, Mark Zuckerberg has not adopted a Rule 10b5-1 Plan and has informed us that he has no intention to conduct any sale transactions in our securities for at least 12 months,” it said. “Mr. Zuckerberg currently holds in aggregate approximately 444 million shares of Class B common stock as well as 60 million shares of Class Bcommon stock issuable upon the exercise of an option.”
Last month, Facebook shares took a big hit as a “lockup” agreement from the IPO expired, enabling some shareholders who were required to hold on to their stock for a predetermined amount of time, to sell. Facebook shares hit a series of record lows.
A game was even created, in which you play as Zuckerberg collecting coins, trying to keep stock up.