U.S. Bancorp (NYSE:USB) insiders not stocking their stocks
Richard Davis, the U.S. Bancorp (NYSE:USB) CEO and some other insiders went on a stock-selling spree. According to filings by the SEC, they sold a total of $26M of stock. Davis exercised his employee stock option and sold almost $10.7M worth of USB stock. He sold 286,900 shares at around $37.27/share. Andy Cecere, the Chief Financial Officer sold 259,355 shares at around $37.02/share which fetched him $9.6 million.
The herd syndrome
Kent Stone and Terrance Dolan, the Vice Chairmen, each sold around $1 million worth of shares while Pamela Joseph sold around $1.4 million. Board
members also followed suit. Jerry Levin a director sold almost $1.1 million while Patrick Stokes, another director sold $217,652 worth of shares. All these insiders netted much less than the July 18th and 19th sale prices. Under the USB stock option plan, they bought the stock for $23.86-$30.12 and sold it the very same day for $36.91-$37.27.
All stock not sold
Tom Joyce, a company spokesperson said that though the bank cannot really comment on why these individuals sold the stock, he said
that they sold the shares during the very brief post-earnings report period that will not be opening again till October. Joyce said that a large number of the options that had been exercised in the transactions were going to expire in very soon.
The bank requires its senior executives to hold stock that is worth 3 times their base salary. In the case of the chief executive, it is six times the base salary, so all these people still hold a substantial amount of stock.
About the bank
U.S. Bancorp (U.S. Bancorp) is essentially a financial-services holding company that operates in multiple states. It provides an array of financial services, such as depository and lending services, foreign exchange, and investment management services and cash management. It is also involved in ATM’s and merchant processing and credit card services amongst other things.