Alphabet Chief Legal Officer Sale of $145M in Stock Before CEO's Exit Fits Pattern
"It doesn't seem like he's unloading or trying to get out," said insider trading analyst Jasper Hellweg of Argus Research in New York.
December 13, 2019 at 01:40 PM
3 minute read
The timing of Alphabet Inc. chief legal officer David Drummond's sale of $145 million in stock ahead of the company's CEO stepping down might seem curious. But his actions appear to be routine and should not alarm investors, according to an insider trading analyst.
"He's received [stock] options in the past and has done the exact same behavior," said Jasper Hellweg of Argus Research in New York. "If it was structured differently it would catch my eye differently. But these are options. It's part of his compensation. It doesn't seem like he's unloading or trying to get out."
Hellweg noted that Drummond's insider transactions filings with the Securities and Exchange Commission show that he has routinely received stock options and automatically sold the same shares of stock.
Drummond followed that pattern of behavior in early November and Dec. 2, when he sold $72 million and $73 million of stock, respectively. The transactions stood out primarily because they were larger than his previous stock sales—and Alphabet CEO Larry Page stepped down Dec. 3.
"It wouldn't be anything that I would flag if I were in an investor position," Hellweg said. "These just happen to be larger options. He hasn't received options of this size before. But he's still going by his same behavior."
Alphabet is the parent company of Google, which did not respond to a request for comment.
Drummond made more than $47 million last year. His compensation has been a controversial issue since he was accused of sexual misconduct while serving as the general counsel of Google in New York.
He has acknowledged that he had an affair in the mid-2000s with Jennifer Blakely, a senior contracts manager in the legal department. Blakely said she was forced out of her job after she became pregnant with Drummond's child and management found out about the affair.
After Blakely spoke out earlier this year, Drummond said in a written statement, "Jennifer and I had a difficult break-up 10 years ago. I am far from perfect and I regret that."
He asserted that he "never started a relationship with anyone else who was working at Google or Alphabet. Any suggestion otherwise is simply untrue."
Drummond added that he realized Blakely "feels wronged and understand that she wants to speak out about it. But I won't be getting into public back and forth about these personal matters."
Read More:
Despite Sexual Misconduct Report, Alphabet's Chief Legal Officer Earned $47M in 2018
Google In-House Lawyers Have Hands Full of Legal Issues and Labor Turmoil
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBig Tech Is Cozying Up to President Trump. Here's Why Their Lawyers Are Cautiously Optimistic
LinkedIn Suit Says Millions of Profiles Scraped by Singapore Firm’s Fake Accounts
5 minute readAre Firms and In-House Teams Courting Technological Debt With Ambitious Purchases?
6 minute readTrending Stories
- 1Class Action Litigator Tapped to Lead Shook, Hardy & Bacon's Houston Office
- 2Arizona Supreme Court Presses Pause on KPMG's Bid to Deliver Legal Services
- 3Bill Would Consolidate Antitrust Enforcement Under DOJ
- 4Cornell Tech Expands Law, Technology and Entrepreneurship Masters of Law Program to Part Time Format
- 5Divided Eighth Circuit Sides With GE's Timely Removal of Indemnification Action to Federal Court
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250