Submitted 1 year ago by L4s@lemmy.world [bot] to technology@lemmy.world
Unity bosses sold stock days before development fees announcement::Unity executives sold thousands of shares in the weeks leading up to last night’s hugely controversial announcement it …
If you’re ever worried that these corporate assholes are never punished for their blatant shady behavior, don’t worry. They have to deal with raised eyebrows which we all know can be super embarrassing.
I dunno, if a government cares enough to look into this then the corpos might get some VERY sharp slaps on their wrists.
Sounds illegal to me.
unfortunately there is a massive loophole that allows them to do this. what they do is set up sell orders at regular intervals (once a month or whatever) for months or years in advance. then when they decide they dont want to sell, they just cancel the order which is totally fine for them to do for some reason. if they do want to sell they just let the order execute and if anyone asks, they set it up a year ago and there is no possibility that the current decision could have influenced them into making that sell order a year ago.
I guess it would be best to change the rules so that they cannot trade their company stocks at all while working there and a reasonable period beyond. I think some legislations already restrict floating stock like that but I’m no expert on the matter.
Installed Godot yesterday and it’s starting to grow on me, I like it. Looking forward to a huge movement of studios over to Godot, which will hopefully speed up the development of Godot through further support. Is there any reliable source of data about which game engines are popular at the moment? I want to see that sweet sweet decline in Unity user base over to Godot.
I found steamdb.info. According to them Godot seems to be growing steadily.
Amazing, we need more competition on the market. It’s never good to let big corporations run a monopoly.
How’s that even legal.
Usually people at a company are not allowed to sell stock except during special windows. For people at the very top it’s restricted even further where they need to essentially plan to buy/sell stock well in advance. Essentially there is a huge delay to any stock decisions. So these sell offs were likely decided far in advance and once locked in cannot be changed.
the sale might not have been shady if scheduled, but the timing of the announcement which they have complete control over IS shady as fuck.
So basically it can be “legit” if they schedule the sale for a year out and the announcement for a year and a day…
You can regulate the stock market as much as you want but it’s a flawed concept.
Ex EA CEO btw fyi
Makes absolute sense!
He’s literally the micro transactions guy. He’s cancer.
It’ll be my ignorance, but how are you allowed to own stock in the company you’re on the C-level of? Wouldn’t your direct control of the company, and the ability to buy and sell stock, be seen as insider trading?
Many company boards (of which CEOs sit at) have requirements where they must vest a minimum dollar amount into acquiring company shares. The purpose of this is to ensure they have an interest in the success of the stock and thereby the success of the company.
These same companies will then additionally have blackout periods typically 30 days before the announcement of quarterly earnings where they are restricted from selling shares.
Not sure what unity’s board rules are but if they are a public company it should be in their investors materials, annual reports, etc
Hard not to see selling stock, as an executive, as confidence inspiring.
Get fucked, use Godot
So they knew damn good and well the announcement was gonna cause the stock price to drop?
shortwavesurfer@monero.town 1 year ago
Sounds like insider trading to me
Szymon@lemmy.ca 1 year ago
The stock is down 5.5% today. It’s down 6% from a week ago.
The stock is up 0.5% from a month ago, and up a whopping 32% from 6 months ago.
It’s down 50% from five years ago.
What I’m getting at is that this announcement has very little movement on the stock price overall. Unless these bosses were clearing out their inventory thinking this news would kill the company, its possible these sales were normal transactions.
gila@lemm.ee 1 year ago
The financial impact of this decision is entirely speculative at this stage. Unity’s next quarterly earnings report won’t be impacted by it. The market is attempting to price in losses that haven’t yet occurred. We won’t know how it affects stock price for awhile
nosurprises@lemm.ee 1 year ago
Hindsight bias. They didn’t know that before the announcement.
Goodie@lemmy.world 1 year ago
So it’s only kind of insider trader because it’s only 5%?
livingcoder@programming.dev 1 year ago
“Normal transaction” after a fundamental change in how all games that use your product are financially responsible by novel, unmeasurable, and unrealistic metrics. No transaction prior to this kind of announcement is “normal” imo.
andrewrgross@slrpnk.net 1 year ago
Why would executives sell shares of their own company in any case?
I could imagine selling a handful of shares to finance a big purchase like a house, but otherwise they shouldn’t ever be cashing out while they’re in charge. If they think they’re serving the company, they should be holding onto their shares.
atzanteol@sh.itjust.works 1 year ago
All trading by corporate officers is, by definition, “insider trading”.
But as long as they did it at the appropriate times (usually windows after earnings calls iirc) and file with the SEC it’s fine.
tory@lemmy.world 1 year ago
We’re gonna tank the company for money, everyone in this room sell all your stock over the next x months.
X months pass and the last sale of stock happens legally
Time for that announcement, send it.
idunnololz@lemmy.world 1 year ago
www.investopedia.com/terms/r/rule-10b5-1.asp
Telodzrum@lemmy.world 1 year ago
Nope, just a scheduled sale of a minute portion of his held shares which he receives as part of his compensation and a minuscule amount of shares outstanding. He’s sold over 50k shares this year, this is just a normal thing.
fartsparkles@sh.itjust.works 1 year ago
bob_wiley@lemmy.world 1 year ago