Having had first-hand experience with the boom-bust-kinda-boom-again cycle in the last 10 years, Blogma can't help but be somewhat amused by the hand-wringing over the decision by Google's top executives to sell millions of shares in the company.
"I just don't think that for the top leadership of a company, large stock sales send a particularly strong message to the other shareholders. I don't think it's a good thing," one academic told News.com. Please. For one thing, top executives have every right to exercise stock options in their companies (as long as there are no insider shenanigans, of course).
Second, although Sergey Brin and Larry Page obviously had a lot of shares to sell no matter what their value, the astronomical dollar amount of their holdings has been driven by the 400 percent increase in the company's stock price determined on the public market. Finally, and most importantly, the legal sale of stock in any company that has seen such an impressive run-up is simply prudent money management--especially in an industry sector that learned the hard way what happens when you hold onto your shares for too long.
Blog community response:
"Blog posts and other publicity about its top executives working for $1.00 will enhance the Google brand, which will enhance the stock price, which will enhance the value of the Google holdings of Messrs. Schmidt, Brin and Page by a couple of $100 million, give or take."
--Truth on the Market
"Interesting that they sold them at all time highs for the stock. Mind you, should the shares reach $600 as some analsyts predict, they could have sold them cheap."
"You must always diversify to protect your assets. Selling the stock does not necessarily have anything to do with the owners future assessment of the company."
--Don Ziller, on News.com's TalkBack