For a very long time, Examine Level (Nasdaq: CHKP) CEO Gil Shwed has obtained no wage (past the minimal wage), and no bonus, however allocations of choices solely, at his request. The intention is to create alignment between Shwed’s compensation and the pursuits of the opposite shareholders. If the share worth rises, either side profit.
A US Securities and Alternate Fee submitting signifies that Shwed will now promote 1.3 million Examine Level shares – from choices allotted to him in 2017 – for some $200 million. The train worth of the choices is $115, the share worth on the time they had been allotted, giving Shwed a acquire of about $48 million. The precise acquire will rely on the share worth on the time of the sale. In response to the submitting, this will likely be a blind sale, at a preset date, and never inside the vendor’s management.
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Even after the sale, Shwed will stay the most important single shareholder within the veteran cybersecurity firm. On the finish of 2023, Shwed had a 25.3% stake, at present price $4.5 billion. There are not any different events at curiosity in Examine Level, i.e. shareholders with holdings of 5% or extra. Shwed typically doesn’t promote shares, however solely choices that on occasion as they expire.
Examine Level has a market cap of $17.1 billion. Earlier this yr, its share worth reached an all-time excessive, however has since fallen 9%. In February, Shwed introduced his intention of stepping down from the CEO function, after three many years within the put up, and changing into govt chairperson of the corporate. Up to now, nevertheless, no successor to Shwed has been introduced, and there’s no deadline for his change of function.
Printed by Globes, Israel enterprise information – en.globes.co.il – on Could 13, 2024.
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