Good point. But I think I'd rather see Miller sell into irrationally exuberant momentum. Then I'd quietly follow him out the door. One thing I learned from owning AES over the years is that being long doesn't mean you have to be long forever (maybe this is obvious). There are times to buy and times to sell. $70 in '00 should have been a sell (I didn't); $2 in '02 was definitely a time to buy (I did).
My guess is that Shahzad is planning to leave the company so he exercised and sold all of his outstanding in the money options. If you look carefully at the Forms 4, it looks like he exercised and sold everything that he could. His remaining shares seem to be 20k in the 401k plan and 7k of options that will vest in March. Also, on Oct 13, the company announced that John Mclaren would replace him as EVP and president Europe & Africa and said that Shahzad would focus on business development.
Either that or he's planning to build a big new house in connection with his new role. In either case, I wouldn't worry about it. The insiders at this company are still massively invested in AES stock and options.
"On Friday, October 13, 2006, the Board of Directors of The AES Corporation (the �Company�) appointed John McLaren, 44 years old, to the position of Executive Vice President of the Company, and Regional President of Europe and Africa.
Mr. McLaren served as Vice President of Operations for AES Europe and Africa from 2003 - 2006 (and AES Europe, Middle East and Africa from May 2005 � January 2006), Group Manager for Operations in Europe and Africa from 2002 � 2003, Project Director from 2000 � 2002, and Business Manager for AES Medway Operations Ltd. from 1997 � 2000. Mr. McLaren joined the Company in 1993. The Company has not entered into an employment agreement with Mr. McLaren in connection with Mr. McLaren�s appointment.
Mr. McLaren will assume the role of Regional President of Europe and Africa from Shahzad Qasim. Mr. Qasim will continue with the Company as an Executive Vice President, focusing on business development work."
There are few companies that better align management and shareholders than this one. Darman, the Chairman, has done nothing but BUY shares since becoming chairman five years ago. Every time he bought, so did I, and it has been a great call. Darman, by the way, was Bush Sr.'s head of the Office of Management and Budget, and is a senior partner at the Carlyle Group. He is smart money incarnate. Furthermore, a significant portion of management's options, which are no doubt numerous, vest only if the company outperforms the S&P. I haven't seen that feature in many other company compensation plans, although the concept of "performance vesting" is gaining obvious appeal across the marketplace. Look at the insider share count. It is very large. Shahzad's selling, apparently in the context of relinquishing some of his responsibilities, doesn't concern me at all
Very good reply from acerdou.AES uses options as a big part of their compensation package not only for those at the top but all the way down to those of us in the trenches. Most people set some target goal for their options and exercise at that point. I for one set some fairly high target prices for my options because I see so much potential growth ( I have a pretty good size block @ approx. $1.00 per share. A 2000%+ return is not bad but I am betting it will go higher). To ayone thinking to go long on this one . YOU GOT THE RIGHT IDEA!