Big bank execs cash in bigly – gainesville coins news

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In just the case of Goldman Sachs ( GS), the company’s executives became eligible to purchase a half-billion dollars worth of GS shares (between them) following the post-election rally.

The way the options are structured, if the share price hit a predetermined incentive threshold in the given time frame, the executives were allowed to buy the shares below market value, securing them a tidy profit when they sell. Binary representation The catch is that these options were soon to expire, and would’ve been rendered worthless had Goldman stock not risen some 33% since November’s election. Dollar rate today in india Since Trump’s victory, the company’s executives have netted $25 million (after fees) by selling their shares.


Binary search javascript Presumably, they are still holding onto much more of that stock.

Lloyd Blankfein, the Goldman Sachs CEO, was holding thousands of ten-year stock options (from 2006, when he first took over as chief executive) that would have expired without paying out unless the GS share price jumped at least 12.5% (to $200 per share) in the span of a few weeks. Usd euro chart Under normal circumstances, this would likely have been dismissed as far-fetched. Gold price history chart 100 years Trump wins and Blankfein’s options become winners all the same.

Similarly, Morgan Stanley ( MS) CEO James Gorman was able to cash in stock options he bought five years ago that could only be exercised in the event that the company’s shares rose above $41, double their 2011 levels. Yahoo futures indices (Prior to the election, hitting this key mark likewise seemed virtually out of reach.) The MS share price subsequently rallied over 30%. Usa today Gorman made more than $8 million from selling his shares; granted, it was the first time he’s sold any company stock in his six years at the helm, and he’s still required to hold 75% of these bonus shares while serving as CEO. Rmb usd (His current stockpile—pun intended—is still worth $56 million, by the way.) Timing Is Everything

As doubtful as these developments seemed before they came to fruition, the story is precisely the same elsewhere around TBTF Land. 100 eur to usd JPMorgan execs sold over $20 million of their shares following the election bump for the sector. Dow jones futures exchange Moreover, these payout numbers are only representative of the highest-level executives across the industry who must, by law, report when they sell shares. Stock connect china Many other employees at these firms who aren’t required to make such disclosures have also surely been cashing in slightly more modest fortunes.

One imagines that John Q. Today’s futures market Public is just as enthusiastic, relieved, and grateful as Blankfein, Gorman, and others that so many stock options were triggered (thanks to a wholly unforeseen rally) just when it seemed they would expire as duds. Cad usd exchange rate The equally surprising election outcome, even when paired with President Trump’s pro-business agenda for tax and regulatory reform, would seem to be the only cause for the spurt of unprecedented market exuberance that made all of those bets pay off at the last minute. Rub usd converter According to the Wall Street Journal, this $100-million surge of shares being cashed in over such a short period of time is unmatched in the last decade.

We have come to accept the incentive structure for Wall St executives as a justified way to tether corporate leaders’ compensation to the company’s success. Litecoin charts Unfortunately, it also potentially encourages profit-seeking behavior that narrowly focuses on the short term. Usd jpy chart Especially so soon after the news is disclosed, it’s unclear whether or not these stock options were pushed “into the money” (i.e. Market futures yahoo became worth their respective strike prices) by short-sighted or self-serving corporate behavior.

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.


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