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EA Sports EVP Andrew Wilson unloads all shares in the firm for $687,000

Saturday, 11th May 2013 14:10 GMT By Stephany Nunneley

EA Sports executive vice president Andrew Wilson has sold all his shares in Electronic Arts, according to a Form 4 filed with the SEC yesterday.

Wilson owned 32,085 shares in Electronic Arts, and at the time of selling, each share was worth $21.42. This made him around $687,260, and now Wilson is the only EA executive without current holdings in the company, according to Gamespot.

A report on Joystiq notes another Form 4 filed yesterday by EA senior vice president and General Counsel Stephen Bene.

Bene purchased 25,000 shares from EA yesterday at $16.06 each for $401,500. While that price was below the current market value, for company stick, such an deal is normal.

Many companies allow employees to purchase a select amount of shares for a set price for a set amount of time as an incentive to invest in the company. Once purchased, the employee can keep the shares or sell immediately.

After Bene purchased the stock with his employee discount, he then unloaded those shares for $22.40 each, making $158,500 off the sale. Bene still holds 6,700 shares in EA.

EA shares rose this week to a 52-week high of $20.84 on Tuesday, compared to the previous 52-week high of $19.51 and shares are up 26% YTD.

EA reported its Q4 and FY13 earnings earlier this week, and as of the closing bell at NASDAQ yesterday,share prices stood at $22.48, up 3.88% over the earlier high.

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4 Comments

  1. MidlifeAxe

    ‘After Bene purchased the stock with his employee discount, he then unloaded those shares for $22.40 each, making $158,500 off the sale. Bene still holds 6,700 shares in EA.’

    What, and that’s allowed?

    #1 2 years ago
  2. Stephany Nunneley

    @1 Yes. As I explained above, a lot of companies allow its employees to purchase a select amount of shares for a set price for a set amount of time. This is as an incentive to invest in the company. Once purchased, the employee can keep the shares or sell immediately – just like with anything else they would buy. I agree it sounds shady – esp with the prices up it *almost* borders on what we would consider insider trading, but apparently, it’s not. SEC rules are rather odd and varied.

    #2 2 years ago
  3. MidlifeAxe

    @2 Yeah, my thoughts exactly! I’m surprised it’s not illegal to do that.

    #3 2 years ago
  4. SolidGamerSnake

    it would only be insider trading, if Bene would have sold the shares on information that he acquired somehow from the company, that are not available to the public, that would influence the share price.^^

    What EA did here is granting him a stock option. That as you correctly wrote can be exercised at any point in time.

    Their actual purpose ( when granted by the own company) is to incentivize the manager to increase the shareprice from which he would benefit aswell, as the option would allow him to buy stock at a fixed price ( the difference is his gain/loss).

    Its a longterm “reward” for his efforts. Now interesting here would be if he exercised the option right after receiving it or if he held it a few months/years.

    If its the latter then its totally fine, as this is their purpose. If its not ( which is unlikely, since no company would issue bonds that far below the stock price, unless this is one of his primary incentives) then one could think that he has indeed some information that is not disclosed.

    #4 2 years ago

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