Newsline: Dean CEO Discloses Motive for Stock Move
The nation's largest milk company announced last month that Gregg Engles, chairman and chief executive, plans to sell 15% of his holdings of Dean common stock and options to help pay for his divorce settlement.
The Dallas Morning News says that kind of revelation is "rare in corporate America." Most CEOs still do not offer explanations when they dump truckloads of stock, the paper says, especially if it involves a personal matter. But with the cloud of last year's corporate scandals still lingering, many companies are becoming more open with shareholders. Disclosing the reason for the stock sale should allow Dean to head off speculation about the company's fiscal position.
Engles, 46, reached a divorce settlement with his former wife last year. He plans to sell 950,000 shares of Dean stock during the next year. That will still leave him with more than 5.5 million common shares and stock options.