The CFO of Zoom (ZM) appears to get a 11,067 shares of stock per month and sells them immediately, leaving her/him with 0 shares in the company.
10/18/19 Kelly Steckelberg CFO Sell 11,067 $65.60 TOTAL: $725,995.20 — Remaining: 0
11/18/19 Kelly Steckelberg CFO Sell 11,067 $69.90 TOTAL: $773,583.30 — Remaining: 11,067
[Not sure how 11/18 is possible unless she got double shares that month]
12/18/19 Kelly Steckelberg CFO Sell 11,067 $67.23 TOTAL: $744,034.41 — Remaining: 0
1/21/20 Kelly Steckelberg CFO Sell 11,067 $76.05 TOTAL: $841,645.35 — Remaining: 0
2/19/20 Kelly Steckelberg CFO Sell 11,067 $102.66 TOTAL: $1,136,138.22 — Remaining 0
3/19/20 Kelly Steckelberg CFO Sell 11,067 $126.58 TOTAL:$1,400,860.86 — Remaining 0
So the CFO has been selling 100% of her stock as soon as she apparently gets a refresh on her options. This has occurred since before the corona virus despite the price increasing each month (except one time since 10/19). This doesn’t show much faith in the company (Or she just needs a couple new lambos each month). Is this normal behavior? Is it also normal for a CFO to make on average ~1mil per month on stock options? Also the CEO has sold over 50% of her stock options in the past month.
I just flipped my long in zoom from long to short, and I’m slightly in the red, so I’m obviously looking to confirm my bias. But with all the privacy/security worries related to China recently, and the 160% increase in stock price within 16 weeks, I don’t want to cut my losses yet.
TL:DR: Is it normal for CFO’s to get 1mil in stock options per month and sell them immediately like the CFO of Zoom does?
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.