Thursday, April 14, 2016

Chairman & CEO Kenneth Frazier Cashes About $1.56 Million In Equity Value (Pre-Tax)

In an SEC Form 4 just filed, we learn that in addition to his over $24 million in 2015 regular pay, the Merck Chairman & CEO has exercised and sold a bolus of his March 2008 stock options (or the underlying stock, on the NYSE) -- netting (pre-tax) about $1.562 million. Not. Too. Shabby.

These sales occured in the markets today, and were conducted under his personal pre-arranged trading plan on file with the SEC. [That in turn means Mr. Frazier did not precisely pick the timing of the sale, only the general (formulaic) trigger points.]

Significantly, even after this latest transaction, he still holds well over half a million common shares of Merck, outright, and has fully vested options on more than an additional 2.6 million shares, and partially unvested options on another 1.2 million or so. So. . . he is still very heavily invested in Merck.

Just employing common sense here, I am all but certain his Merck stockholdings are his single largest asset class, by an order of magnitude -- in his personal portfolio. He is -- and remains -- deeply engaged and aligned with Merck stockholders, in my view. Now you know -- out for a walk-about, now. . . Be excellent to one another!

1 comment:

Anonymous said...

WOW!! All while Merck West Point USW Local 10-86 is being faced with contract proposals such as 12 hour work days, elimination of premium pay, part-time employees, more subcontracting/job outsourcing, etc,.Union is standing strong and cannot except these give backs. The way Merck acts you'd think they are a company ready to go out of business. Current contract expires 04/30/2016.