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Suits, Sarbanes-Oxley linked to CEO stock sales

Suits, Sarbanes-Oxley linked to CEO stock sales

by Rick Turoczy on July 31, 2006

Chief executives are more likely to sell large chunks of their stock holdings when their companies disclose new litigation or a violation of Sarbanes-Oxley internal controls requirements, according to a study released on Monday.

The report by The Corporate Library, which examined 120 chief executives who sold more than a third of their company shares in 2005, showed 30 percent sold stock when their company was involved in some sort of litigation. Twenty-four percent of the chief executives sold stock when there was a Sarbanes-Oxley violation at their firm.

Suits, Sarbanes-Oxley linked to CEO stock sales

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