As his 40-year career at Time Warner Cable draws to a close, chairman and CEO Glenn Britt has benefitted from the run-up in his company’s stock price over the past 12 months, exercising stock options in November and December as part of an automatic trading program and reaping a profit of about $6 million.
Britt is slated to retire at the end of the year. The trades were made between Nov. 6 and Dec. 16 as part of a 10b5-1 automatic trading program, a common practice for top executives at publicly traded companies. With 10b5-1 plans, trades are made automatically after a stock reaches a pre-determined level and are not under the control of the executive.
According to documents filed with the Securities and Exchange Commission, Britt has exercised options on about 50,000 shares of Time Warner Cable stock at a strike price of $23.48 per share and sold them in a series of transactions over the two-month period for prices between $120.34 and $134.74 per share. For the full year, Britt has exercised about 200,000 options for prices ranging from $87.09 to $134.74 each for a total profit of about $17.5 million.
TWC shares have been on a run over the past several months – the shares are up by almost 40% since June, when reports first surfaced that Liberty Media had broached the possibility of a merger between TWC and Charter Communications. Liberty owns a 27% interest in Charter. So far a formal offer has not been made.