Monday, January 8, 2018

CEO's Are Only Human...

In the last week we learned that most of our computers and other smart devices have a security flaw: Meltdown and Spectre. Apparently it's in our computer chips. But Intel and other chip makers knew about the flaw seven months ago. Three months ago (while the public didn't know about the flaw) and earlier than previous automated stock sales, Intel CEO sold $39 million worth of stock, reducing his equity stake to the mandatory 250,000 shares. His stake in his own company was reduced by 80%.

So far, we can only speculate. But assume you learned about the flaw. And then 3 months later, you abandon 80% of your equity. It would probably say you've lost confidence in your own company or you're getting ready to retire...both reasons because your company can't fix the flaw without jeopardizing significant performance levels. And now after some period of time--after your money is safely invested somewhere else--you release the bad news about your company.

Suspicious? You bet.

Understandable? Hey, we CEO's are only human and subject to the same instincts toward greed, self-centerness and self-preservation as the rank-and-file in our companies.

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