Coach Ceo must have decided the shares of Coach are way under valued. He is not going to sell his shares.
WASHINGTON -(Dow Jones)- Coach Inc. (COH) said Monday that Chairman and Chief Executive Lew Frankfort canceled the rest of his existing stock trading plans. The New York marketer of accessories said in a filing with the Securities and Exchange Commission that Frankfort had planned to sell 682,000 common shares starting this week. Coach didn't provide further details on the cancellation of the plans in its filing. Coach shares closed at $30.64 apiece Monday, down 1 cent from Friday's close. -By Nicolas Brulliard; Dow Jones Newswires; 202-862-1351;
Thats because he has already reaped a fortune with options. This is the kind of shit that eventually does in the shareholders while the CEO walks away a very rich man. NO CEO, and I don't care how good a job he has done, deserves that much money for managing a PUBLICLY HELD company. I own stock in companies were the CEOs gets a couple of hundred thousand a year, no options, and the stocks have done very well.
This is not about doing a good job. Its about screwing the shareholders. Every option dilutes the value of YOUR SHARES! Go back and deduct all of the share increase due to options for management then divide by current earnings, thats how much you have LOST!
Its time for the SEC to prohibit stock options after a company has gone public. After a company goes public it is then owned by the shareholders. It would be nice if shareholders could trust management and the BOD to look after their interest. But its not going to happen.
You certainly have a good point about the CEO's salary ---- however; he's been doing a great job and another CEO could kill this stock. Look at the Jack Welch story. This stock is a definite buy here and I am adding to my position.
Whatever anyone thinks of Frankfort I think his cancellation of his planned sale is a positive. It wasn't likely to influence the value of the stock that much and it wasn't likely going to make much difference to his overall net worth. It was a signal to COH shareholders and the market that he is not a selfish bastard and that he is sensitive to the value of the shares. If nothing else, it throws a shovel of dirt under the stock price. I appreciate his gesture even if it might only be symbolic. Perception is reality and his decision is positive.