Red Hat CEO begins stock-selling plan

Red Hat disclosed the plan Tuesday, saying CEO Matthew Szulik wanted to diversify his financial investments.

Stephen Shankland principal writer
Stephen Shankland has been a reporter at CNET since 1998 and writes about processors, digital photography, AI, quantum computing, computer science, materials science, supercomputers, drones, browsers, 3D printing, USB, and new computing technology in general. He has a soft spot in his heart for standards groups and I/O interfaces. His first big scoop was about radioactive cat poop.
Expertise processors, semiconductors, web browsers, quantum computing, supercomputers, AI, 3D printing, drones, computer science, physics, programming, materials science, USB, UWB, Android, digital photography, science Credentials
  • I've been covering the technology industry for 24 years and was a science writer for five years before that. I've got deep expertise in microprocessors, digital photography, computer hardware and software, internet standards, web technology, and other dee
Stephen Shankland

Matthew Szulik, chief executive of Linux seller Red Hat, has filed a plan that sets a schedule for him to sell company stock so it can be sold in the future regardless of what material information the executive knows about the company. Red Hat disclosed the plan Tuesday, saying the executive wanted to diversify his financial investments. The 10b5-1 plan, when combined with other stock sales planned for January 2006, won't exceed 27 percent of Szulik's common stock.

Company stock has been increasing in value over the last year to $28.05 on mid-day Tuesday as Red Hat reported steadily growing revenues and profits. On Dec. 21, the Raleigh, N.C.-based company reported that revenue grew 44 percent to $73.1 million for its quarter ended Nov. 30, while net income nearly doubled to $24.6 million, or 12 cents per share from $12.4 million, or 6 cents per share, the year earlier. Earlier in December, Red Hat's stock was added to the Nasdaq 100 list.