| CHICAGO, March 18
CHICAGO, March 18 CBOE Holdings Inc's
top two executives have each established plans to sell up to 14
percent of their shares in the company, the exchange-operator
said on Tuesday, a day after its stock price hit a record high.
The authorizations from Executive Chairman Bill Brodsky and
Chief Executive Officer Ed Tilly represent the first time that
any of CBOE's top officers have planned to sell stock since the
company went public in 2010, spokeswoman Gail Osten said.
"This plan allows them to gradually diversify a portion of
their holdings in an orderly, prearranged manner for personal
financial and estate planning purposes," she said. "Each remains
extremely optimistic about the long-term growth of the company."
CBOE owns the Chicago Board Options Exchange, the largest
U.S. stock-options market.
Brodsky, who stepped down as CEO last year, authorized the
sale of up to 50,000 shares during the next three months,
representing about 14 percent of his holdings, according to a
statement from CBOE. Tilly authorized the sale of up to 25,000
shares over the next year, which represents about 14 percent of
The executives established plans to sell shares with a
brokerage that are subject to pre-determined volume and price
parameters, the statement said. Under U.S. securities rules,
company insiders can only establish such plans when they do not
possess material non-public information.
CBOE shares have climbed 60 percent over the past year and
are up 10 percent so far in 2014. The stock fell 2.6 percent to
$57.10 on Tuesday after reaching a high of $59.28 on Monday.
If they unloaded all the shares they have authorized for
sale at Tuesday's closing price, Brodsky would earn nearly $2.86
million and Tilly would earn $1.43 million.
"I'm sure that corporate officers in general like the idea
of diversifying their holdings," said Gaston Ceron, equity
analyst for Morningstar. "Generally high ranking officers of a
company could be in a position where a lot of their wealth is
tied up in a company's stock."
Fourteen percent is a "decent-sized number" for stock sales,
Ceron said. However, the executives' interests should remain
aligned with investors' interests because they are retaining a
majority of their holdings, he said. Ceron added that CBOE's
stock price looked "lofty" and pegged its longer-term fair value
"I actually think it happens to be a very good company," he
said of CBOE. "I think the market for their stock has gotten
ahead of itself."
CBOE on Tuesday said it will implement nearly non-stop
trading for futures on its well-known CBOE Volatility Index,
often used as a gauge to measure anxiety in the market, on June
The company, which was fined $6 million last year for
failing to properly police its own marketplace, said this month
that it would implement tighter rules for traders to help