Running Commentary on the SP Movements., page-127

A director selling shares is not a corporate governance shortcoming nor is the timing of the sale.

Think about it. As shareholders, don't we want directors to have skin the the game? If the answer is yes, we need to expect directors to sell their shares now and then. It's illogical to think they will never sell or only sell when it's convenient for an individual shareholder's (ie your own) circumstances. Did the sale hurt the SP? Of course it did - that's why so many shareholders are upset. But remember any shares held by directors are the their personal property for them to do whatever they wish, whenever it's lawfully permitted to do so.


Think about it another way. Klaus' sale has meant that those who missed the first wave can now jump on board at a lower price and make more money. How compassionate of him - that's why he's known around here as Santa Klaus .