In recently criticizing Yahoo!'s (YHOO) insiders for dumping $233mm in stock over the last 2 years, when they've only bought $103k in shares, I would be remiss if I also didn't call out 2 other executives for big share dumps last week:
1. Craig Mundie, head of research and strategy for Microsoft (MSFT). Craig decided to sell stock worth $1.7mm recently. Craig has resided over Microsoft's R&D efforts for the last few years. This group eats up nearly $10 billion annually of Microsoft's free cash flow. It is the group Microsoft looks for to compete in mobile computing or other areas, rather than buying a leading company such as, say, Research In Motion (RIMM). The R&D group has eaten up about $60 billion of Microsoft's cash in the last 10 years with not much to show for it. This latest share dump is very disappointing to me as a MSFT shareholder, especially given his group's performance.
2. Jack Ma, head of Alibaba.com (ALBCF.PK). When news broke last week about how much Yahoo! stock had been sold by insiders in the last 2 years, perhaps Jack Ma got inspired. The head of Alibaba.com -- whose parent company is 40% owned by Yahoo! -- sold stock worth $35mm last week. That's a Terry Semel-sized disgorgement of shares. His explanation for the share sale was the most original I've ever read for a share dump: "There are many things that I need to learn how to do ... all of which I would like to do while I am still young and will need to do now.... I need to start learning now how to deploy money to do proper things, to experience the real meaning and responsibilities of having wealth." Good luck, Jack. It is a heavy burden you carry, but I know you will do it with a solemn and determined focus.
Disclosure: Eric Jackson held a long MSFT position at the time of publication. |
