LPL Financial Executives Adopt New 10b5-1 Plans
LPL Investment Holdings Inc. (NASDAQ: LPLA) today announced that Esther M. Stearns, President and COO, and William E. Dwyer III, President, National Sales & Marketing, have established new Rule 10b5-1 stock trading plans to effect the orderly sale of a portion of their respective holdings of LPL Investment Holdings Inc. common stock. The adoption of these plans is a part of a strategy for asset diversification, liquidity and generation of cash to pay taxes associated with their respective holdings of LPL common stock.
The trading plans are designed to comply with LPL's policies regarding limitations on equity transfers. In particular, each of these individuals has previously entered into an agreement with LPL pursuant to which he or she has agreed to certain limitations on the transfer of his or her shares of common stock (including common stock issued upon exercise of options) for the four years following our initial public offering. Pursuant to this agreement, each of these individuals has agreed not to sell shares of common stock exceeding 8% of the aggregate amount of common stock (including common stock issuable upon exercise of vested options) and restricted stock units that were held by such individual immediately prior to the initial public offering, subject to certain exceptions. If the executive officer does not sell the total number of permitted shares in a year, any remaining percentage will be carried over into the following year.
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