How is this not illegal

[A500leroy]

The guys 6 million quid to join the company,watches the share price tumble and then buys cheap shares in the company that employs him. Is this normal practice?

https://www.morningstar.co.uk/uk/news/AN_158108522...

[98elise]

A500leroy said:

The guys 6 million quid to join the company,watches the share price tumble and then buys cheap shares in the company that employs him. Is this normal practice?

https://www.morningstar.co.uk/uk/news/AN_158108522...

It's not illegal to buy shares in a company you work. There will be periods where he is not allowed to buy shares though, but outside of that he can buy what he wants. Anything he buys will be made public.

Even though he is buying, the share price dropped so there is nothing underhand happening.

If you think they're cheap, then pile in yourself. They are available to anyone at that price.

[Kent Border Kenny]

You think that it should be illegal to buy shares in the company that you work for?

Why?

[lampchair]

What is wrong with this?

As long as he’s outside of the close period etc it’s completely normal.

[AlienLifeForm]

It’s quite normal. And is expected as a show of confidence in himself and the company he runs. Shareholders and potential investors like it when the CEO has significant skin in the game.

[98elise]

AlienLifeForm said:

It’s quite normal. And is expected as a show of confidence in himself and the company he runs. Shareholders and potential investors like it when the CEO has significant skin in the game.

Good point about it being encouraged. I don't think I've worked in a company where the CEO didn't have a large shareholding. In addition most had a large part of their remuneration being in share options.

[dickymint]

If Labour had got in they would force you to buy shares

[bigandclever]

I wonder if the OP is going down the ‘boss drives company value into ground, buys stock, pulls rabbit out of magic hat, stock value goes up, makes a fortune’ route?

[A500leroy]

bigandclever said:

I wonder if the OP is going down the ‘boss drives company value into ground, buys stock, pulls rabbit out of magic hat, stock value goes up, makes a fortune’ route?

More like boss runs down value,buys shares,sells to Amazon who desperately need what rm have..