June 6, 2018

Insider Trading Policies: What Companies Are Doing

One of the areas that companies most frequently benchmark themselves is insider trading policies/blackout periods. We’ve surveyed that area over a dozen times over the past 15 years. We’re holding our semi-regular webcast about this area next month: “Insider Trading Policies & Rule 10b5-1 Plans.”

Another good source is the NASPP’s “Domestic Stock Plan Administration Survey” that it conducts every three years or so with Deloitte Consulting. Last year’s NASPP survey revealed that 100% percent of respondents to have an insider trading policy – and these other tidbits:

– 81% require officers/directors to acknowledge understanding and/or receipt of the policies of the insider trading compliance program
– 85% require insiders to pre-clear their trades
– 94% prohibit hedging
– 94% also prohibit trading in puts, calls, and similar derivatives
– 80% prohibit pledging
– In-house counsel is most commonly responsible for preparing Section 16 filings (64% of respondents), followed by stock plan administration (31%) and corporate secretary (21%). This was a ‘check-all-that-apply’ question; at some companies, multiple people might have this responsibility.

Insider Trading Policies: The Infographic

Here’s a nifty infographic from the NASPP with some of the survey stats:

Making IPOs Easier: Latest Congressional Activity

This Davis Polk blog lists all the latest attempts by Congress to pass legislation that would enable companies to go public more easily. Also see this Cooley blog about attempts by other organizations to push IPO reform…

Then there is this Kevin LaCroix blog about John Coffee’s views: “Is Over-Regulation Really the Reason There are Fewer IPOs?”…

Broc Romanek