Bloomberg: Palo Alto Networks CEO Sells $130 Million Stock After Record Pay

Bloomberg: Palo Alto Networks CEO Sells $130 Million Stock After Record Pay

October 27 2016

Excerpt:

Palo Alto Networks Inc. Chief Executive Officer Mark McLaughlin, the fifth highest-paid executive in the U.S. last year, sold $130 million of shares after the company issued its biggest-ever grant to keep him on the job.

While selling equity awards once they’re vested can be a sound move for executives looking to diversify their investments, doing so at a quick pace might rub some directors the wrong way, said Steven Hall, founding partner at executive compensation consultant Steven Hall & Partners.

“Some boards get very upset about giving equity to an executive and finding that they’re selling it right away, saying it shows a lack of faith,” Hall said. “Others say: ‘It’s your stock, you earned it, it vested and you can do whatever you want with it.’”

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