Wattles To Sell 20 Percent of His Hollywood Stock13 May, 2003 By: Hive News
Hollywood Entertainment chairman and CEO Mark Wattles will initiate a stock sale plan next week that will divest him of 1.58 million Hollywood shares – or 20 percent of the 7.9 million shares and options he owns -- over the course of the next year.
Wattles will begin selling 6,200 shares per day May 23 as part of a plan filed under a Securities & Exchange Commission rule that governs such actions.
“Although I am very excited about the future and believe the shares are undervalued, I have nevertheless decided it is in the interest of my family to diversify a relatively small portion of my holdings,” Wattles said in a statement. “I expect the company to continue to meet or exceed its earnings guidance, so spreading the sale out should enable me to achieve the highest average price.”Hollywood's board of directors believes that the steady sale, without regard to price and over an extended period of time, is a selling method that aligns Wattles' and shareholders' interests, the company said.
Virtually all of Wattles' net worth for the past 15 years has consisted of his holdings of Hollywood stock, he explained. When the plan is complete, about 80 percent of his net worth will still be in company stock, rendering him “highly motivated” to ensure Hollywood's long-term success, he added.