Pfizer CEO sold $5.6 million worth of stock amid the pandemic
Pfizer’s CEO sold about $5.6 million worth of stock on Monday, according to a filing. CNBC’s Meg Tirrell reports on the sale and the company’s response. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi \n\nPfizer CEO Albert Bourla sold almost $5.6 million worth of stock on Monday, the same day the drugmaker announced positive early data on its experimental coronavirus vaccine that sent shares soaring.\n\nShares of Pfizer jumped by almost 15% on Monday after the company and its partner BioNTech said its vaccine was more than 90% effective in preventing Covid-19 among those in the trial without evidence of prior infection.\n\nBourla sold 132,508 shares at an average price of $41.94 per share, or nearly $5.6 million, according to a securities filing. The sale was part of a pre-scheduled 10b5-1 trading plan, which was adopted on Aug. 19, the filing shows, as the company was enrolling participants in its late-stage trial.\n\nIt’s unclear when Bourla found out about the positive vaccine data, though another executive, Dr. Kathrin Jansen, the head of vaccine research and development at Pfizer, told The New York Times she learned of the results at 1 p.m. on Sunday.\n\nThe sale accounted for 61.8% of the shares owned both directly and indirectly by Bourla. He still owns 81,812 either directly or indirectly, the filings show. Pfizer confirmed the sale in a statement and added that Bourla has a larger holding in the company through the company’s “qualified and nonqualified savings plans,” which likely means stock options.\n\n“After being with the company for more than 25 years, Albert owns a substantial amount of Pfizer stock under our qualified and nonqualified savings plans,” a Pfizer spokesperson said in a statement. “He now holds approximately nine times his salary in Pfizer stock after the sale this week.”\n\nAccording to the company’s 2019 proxy report, Bourla, who became CEO on Jan. 1, 2019, was being paid a base salary of $1.65 million starting April 1. Nine times that salary would be about $15 million worth of shares.\n\nBaird biotech analyst Brian Skorney defended the sale, saying that it’s a “highlight of how capitalism can work at its best.”\n\n“What’s great about the biopharma industry is that there’s an incentive scheme for private industry to come up with drugs that meaningfully change the health-care dynamic in the country,” he said in a phone interview. “I don’t know that there’s even an example, certainly not in my lifetime that I can point to, where something will have such a drastic positive effect on the whole world as a vaccine for Covid.”\n\nSkorney said that Bourla “fully deserves this” and that his profit from the sale is miniscule compared with the net benefit an effective Covid-19 vaccine will provide the world.\n\n“More than just that, I feel like I should just send Albert some money myself to be like, ‘Thank you,’” Skorney said. “We have a sight line to getting to the end of this dark tunnel and that is in very large part due to the efforts at Pfizer and the chief executive.”\n\nBourla is not the first pharmaceutical or biotech executive to cash in on his company’s stock gains during the pandemic. The top five executives at the biotech company Moderna, which has another Covid-19 vaccine in development, have sold more than $80 million this year as the company’s stock shot up more than 300% since Jan. 1, Stat News reported earlier this year.\n\n» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision\n» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC\n» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic\n\nTurn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.\n\nThe News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast \n \nConnect with CNBC News Online\nGet the latest news: http://www.cnbc.com/\nFollow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC\nFollow CNBC News on Facebook: https://cnb.cx/LikeCNBC\nFollow CNBC News on Twitter: https://cnb.cx/FollowCNBC\nFollow CNBC News on Instagram: https://cnb.cx/InstagramCNBC\n\nhttps://www.cnbc.com/select/best-credit-cards/ \n\n#CNBC\n#CNBCTV
Top US executives dump their stocks
US executives are actively dumping their shares amid a possible contraction in the US economy and forecasts for an imminent completion "bovine" market.
According to the analytical company Smart Insider, from the beginning of 2019 to the beginning of autumn, top managers of American organizations dumped about $ 19 billion in securities of their companies. If the situation does not change, total share sales by corporate insiders are expected to reach $ 26 billion by the end of the year.
This indicator may exceed the figures of the post-crisis maximum in 2017. Then the management of American firms sold shares for a total of $ 25 billion.
The largest sale of corporate securities ($ 37 billion) was observed 19 years ago.
Walmart, Estee Lauder and Lululemon Athletica are most actively sold this year.
At the same time, it is reported that the total amount of shares sold may exceed forecasts, since Smart Insider analysts did not take into account in their reports the sale of shares as part of the exercise of options, as well as their implementation for tax purposes.
According to the head of the research department of Boston Partners for global markets, Michael Mulleini, the current situation is due to economic uncertainty, the trade conflict between the United States and China, as well as the high price level of the companies themselves..