Executive Stock Sales and Securities Class Actions

High-tech companies often eschew the high salaries common in larger companies in favor of compensation packages tilted heavily toward stock options. Indeed, employee stock options are the fuel for the engine that is Silicon Valley. But incentive options have also fueled attacks by the plaintiffs' securities bar, which thrives on suing executives in fraud cases for exercising their stock options. This article suggests one possible way of immunizing executives from such attacks.

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