Nortel Execs Selling Stock

By Mark Evans | Published: June 30, 2007

Over the past couple of weeks, several Nortel executives have been selling shares. The most notable sellers include:

1. Dietmar Wendt, head of global service, who sold 5,055 shares for $128,002
2. Lauren Flaherty, chief marketing officer, who sold 6,172 shares for $157,002
3. George Ridel, chief strategy officer, who sold 13,242 shares for $337,671
4. Dennis Carrey, executive v.p., corporate operations, who sold 9,550 shares for $242,092

Update: According to SEC documents, the stock sales were mandatory for tax withholding of restricted shares that vested in June.

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  • Anon

    These small transactions end up happening a few times a year. These are initiated by the executives to cover off the tax implications of receiving options or restricted stock units.

  • jayemmay

    It is common wisdom that insider trading tends to reveal the outlook of the insiders about the company’s fortunes.

    All these insider sales would appear to be very bad news about Nortel. Many sales were reported on June 15, 2007. The sales price for all the transactions is about the same, namely about $25. Did they all decide it was time to lighten load?

    According to Yahoo’s listing of insider transactions of June 17 and thereafter, these are all the insiders who sold shares.

    Morin, Stevenson, Barrios, Davies, Edwards, Pangia, Wendt, Flaherty, Riedel, Drinkwater, Hackney, Bartzokas, Lowe, MacKinnon, Slatterly, Karr, Joannou, Carey.

    Can anyone think of a reason for these sales that is not negative about the fortunes of Nortel?

    Slowly, but surely, losing hope.

    jayemmay

  • curious

    Are you implying anything or just informing us?

  • Mark Evans

    I’m sure providing a list of executives who have been selling shares because it struck me as interesting.

  • Not Observer

    All one has to do is actually read the SEC Filings for these transactions to understand the purpose of these transactions. They all say – “1. Mandatory and automatic open market sale of common shares to pay applicable withholding taxes upon the vesting of restricted stock units.”

  • formerNortelEmployee

    Often (bonus) options are distributed to the recipients at the same time which means that they all vest at the same time. It is sound financial management to sell (some of) the options when they vest in order to diversify. So this may be what has happened.

  • http://www.allaboutnortel.com Mike Smith

    Mark Evans,

    Most of your writings regarding Nortel are negative. Clearly – you have an adgenda with Nortel and you are not wishing well for the company.

    I am sorry to see that.

  • jack_bauers_evil_twin

    Mark,

    As “Not Observer” has pointed out, all of these insider sales transactions were mandatory sales for income tax purposes.

    You should update your initial blog posting to note that fact.

    Here is the form 4 filing for Dieter Wendt. Look at note #1 in the “Explanation of Responses” at the bottom of the form.

  • rizcorpl

    Some how, I did not find it surprising that you conveniently forgot to mention that these stock sales were mandatory for tax withholding of restricted shares that vested in June.

  • Mark Evans

    Done.

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