Insider selling is not a problem as long as the delta of the sell and buy price is not larger than the profit for the year. In Lulu's current case the profit is lower than the amount leaving the company.
Since options usually mature in three years - it will be interesting to see if the current options are at the current market value and not a discount. If they are then this is a temporary issue except for the 10M plus shares that Dennis has. With this amount of shares another $500M could leave the company by 2014. This may be okay to some, but leaves a question of value in my opinion unless the profit all of a sudden goes into the $100s of Millions of dollars per annum on a constant basis.