SiriusXM CEO Adopts 10b5-1 Trading Plan
Sirius XM Radio (NASDAQ: SIRI) today announced that its Chief Executive Officer, Mel Karmazin, has adopted a trading plan for SiriusXM common stock in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. This process is intended to facilitate Mr. Karmazin's personal financial planning strategy of asset diversification and liquidity.
In accordance with the 10b5-1 plan, up to 30 million options to purchase SiriusXM shares will be exercised and the underlying shares will be sold into the marketplace (a portion of the proceeds will cover the exercise price). It is expected that the plan will become effective in, and sales thereunder may be made as early as, mid September 2012.
Rule 10b5-1 allows corporate executives to adopt prearranged trading plans when they are not in possession of material, non-public information. Under these plans, company securities may be bought and sold under specified conditions over an extended period of time. The 10b5-1 rule allows individuals to gradually alter or diversify their portfolios while avoiding concerns that the transactions are occurring as a result of insider information.
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