The 10B5 'planned' sale is the biggest fraud in already fraudulent market. If you read the rules, you file your 'plan' ahead of time. However, you are allowed to 'cancel' the plan at any time. So, here's what Mr CEO does.
He files his 10B5 'planned' sale, before knowing what the quarter is going to be like...well in advance. Then, if the quarter is bad, his 'planned' sale goes through. If the quarter is good, you just don't execute the 'plan'
What is the point then of the planned sale if you are not required to execute it?
because even "planned sales" are still geared towards making a profit - just as you or I would like it to be if it were us. execs just do not have the privilege of "timing" their sales to profit the MOST, like us. you can hate it all you like, but it's only fair that they have a choice to sell or not - since they cannot dictate the "timing" of the trade(s) based on what's occurring in the market...imo, of course.