Inside Track: Determining when to Allow Executive Stock Sales is Getting Trickier
Newly tightened rules on prearranged trading plans for executives likely will reduce their usage, putting GCs more often in the hot seats on whether to approve or block proposed sales.
March 02, 2023 at 03:19 PM
5 minute read
Risk and Compliance
The original version of this story was published on Law.com
Not much makes a general counsel's heart sink more than an allegation of insider trading against one of the company's top executives.
Especially when a charge comes from the Department of Justice—which unlike the Securities and Exchange Commission has the power to bring criminal cases and put people in jail—the fallout can destroy careers and reputations.
But the bad news for GCs and in-house legal teams is that making the call on which executive trades are above board and which might run afoul of the law has always been tough—and is getting even tougher.
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