Compensating Executives by Insider Trading? And it is Legal.

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With much spot light focused on insider trading and excessive executive compensation received at times of recession, investment programs under Rule 10b5-1 receive little attention. Investment plans under Rule 10b5-1 were established to prevent insider trading and protect the securities markets but instead have been used to enhance executive compensation.   Like options, which in theory were supposed to tie management pay to stock performance, … [Read more...]