CEO and fellow directors net thousands in profit
Directors of UK chip maker ARM made a killing exercising their share options yesterday [6th February 2013], with CEO Warren East leading the way by disposing of shares worth in excess of £3 million having been granted the option to buy them at around a sixth of their current value. It came just 24 hours after the company’s stock hit a record high in London, at one point nudging the £10 mark after it reported a 16 per cent pre tax rise in profits for Q4 .
Sales were driven mainly by demand for its chip designs in smartphones, mobile computers, medical devices and micro controllers, with the news driving ARM’s stock up by more than 6 per cent.
Now it’s emerged that East and seven fellow directors seized the moment, selling their options for up to 929 pence per share and netting thousands from the exercise.
Tim Score, the chip designer’s chief financial officer, was next behind East selling nearly 315,000 shares also acquired at an option price of 132 pence.
ARM’s shares have more than doubled in value since May last year , though analysts are starting to question whether its stock is overpriced.
By midday today the shares were trading at around the 928 pence level, a small drop on their opening price.