Mr Price falls 5% after CEO and CFO immediately cash in incentive shares
The retailer’s three most senior directors sold a combined R98m worth of shares last week, according to a directors’ dealing statement
Mr Price’s share price fell 5% to R244 on Thursday morning as the market reacted to a directors’ dealing statement released at 5.05pm on Wednesday showing the retailer’s three most senior executives sold a combined R98m worth of shares last week.
On November 29, CEO Stuart Bird, CFO Mark Blair and executive director Steve Ellis exercised their options to buy shares at R151.94 each.
All three elected to promptly sell all the shares acquired at the option strike price at an average price of about R248 each.
The directors’ dealing statement also included further transactions in which all three Mr Price executives sold their entire allotments of other shares issued to them as long-term incentives.
Wednesday’s statement showed that Bird made a profit of R10.8m by exercising his option to buy 112,271 shares at R151.94 each, which he sold for a total R27.8m
Bird sold an additional 106,887 shares vested to him for a combined R27.5m.
Blair made a profit of R6.6m by exercising his 68,770 options and sold his 73,649 vested shares for R18.9m.
Ellis profited R2.3m from his 24,242 options and sold 2,233 vested shares for R573,992.20.
On Monday, Mr Price issued a statement detailing the latest “top up awards” shareholders had approved for its executives long-term incentive schemes, which vest in five years at a strike price of R231.79.
Bird was awarded 113,634 options at the new strike price, Blair 66,058 and Ellis 16,051.