Biglari buys $3 million worth after the rights were distributed
Common Stock, stated value $.50 09/03/2013 P 4,190 A $ 420.5356 14,263 D
Common Stock, stated value $.50 09/04/2013 P 2,050 A $ 419.3102 16,313 D
Common Stock, stated value $.50 09/05/2013 P 905 A $ 419.8956 17,218 D
This is contractually called for....he has to buy shares with 30% of his bonus and he has each year.
(This is the 3rd year) This year, I think his bonus maxed out at $10 million.
Wonder why he waited until AFTER the rights were issued. BH share price is effectively (after factoring in the value of the rights offering) 10% higher than it was a month ago.
Could be cash-flow related, I suppose. He's already "stuck" increasing his previous position by 20% due to the right's offering. In light of that it's possible he wants to only buy the absolute minimum number of shares required by his bonus and avoid the additional shares/rights from buying sooner. Other CEOs would have no qualms about buying extra shares on the cheap (like stock options) then turning around and selling them immediately, but I suspect Biglari doesn't feel comfortable selling since he's publicly criticized such behavior before.