Boston, MA 08/05/2014 (wallstreetpr) – There is nothing wrong if someone wants to share his stake in the company, but the questions start arising when the CEO of that particular company does that, and that too for a long time. According to reports, Marc Benioff, the Chief Executive Officer of Salesforce.com, inc. (NYSE:CRM) has been selling his stake in the company for a few months.
When it started:
He has been selling his stake in Salesforce.com, inc. (NYSE:CRM) since the early June. Over a period of two months, he has sold over $50 million worth of equity shares in total 70 transactions. He has sold most of his shares in the price range of $51-$58 per share.
Is there something wrong?
Although it looks fishy, but reports claim that it is scheduled step taken by the CEO of CRM. It means that all the transactions are pre-planned, and there is nothing wrong in selling his stake. The company might have made this plan months ago; Marc Benioff is now executing the plan.
His stake in the company:
Earlier he had around 40.8 million shares in the company and after selling 20,000 shares, for just under $1.1 million he is still left with around 40.1 million shares.
When reporters tried to ask CRM about his step, Salesforce.com, inc. (NYSE:CRM) refused to comment on this step of Marc Benioff. Although if you have a look at the past years, it is something that he doesn’t do i.e. he didn’t sell any share in 2013 and before that, but now suddenly he has started selling his shares. It cannot be said that he is trying to sell his stake due to pricing fluctuation because the highest price of company’s stock was recorded at $67 a few months back. One possible reason for this cause may be to accumulate money for other investment options in next few months.