Overstock Inc. (NASDAQ: OSTK), CEO Patrick Byrne on Friday explained in a statement why he sold "founder's shares."
What To Know
Earlier this week, Overstock shares plummeted following Form 4 filing that shows Byrne sold a ton of shares. Byrne sold 250,000 shares sold on May 13 at $13.3316. On May 14, he sold another 250,000 shares for at $12.8447.
“I simply had to supplement my nominal salary with stock sales in order to fulfill personal commitments to invest personally in blockchain projects such as Medici Land Governance, along with a need to meet charitable pledges,” Byrne said in his Friday statement.
Why It's Important
Overstock shares dropped more than 15 percent earlier this week. He explains that people have been writing to demand answers regarding his timing, reasoning, and purpose of the sale.
"Apparently, some find it unsettling and demand answers from me about why, after 20 years of working (generally without salary or compensation), I might sell several tens of millions of dollars' worth of stock," his statement said. "Frankly, I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life.
Byrne disclosed that for many years he did not draw a salary in his role as CEO; His current annual salary is $100,000.
"Frankly, I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life. Not once have I ever asked a shareholder for his reasons in any decision he made," Byrne said.
"I do not intend to ever give such an explanation again. I owe shareholders staying within the law and not making decisions based on inside information, not explanations of my life and projects outside Overstock," Byrne said.
Overstock's stock was trading higher by 2.5 percent at $10.35 per share at time of publication.
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