Reynolds American Inc. said Friday that 11 management officials, including chief executive Susan Cameron, have established stock-trading plans as allowed by federal securities regulations.
Those plans enable individuals who are not in possession of material, nonpublic information to establish prearranged plans to buy or sell shares over a specified period or at a specific price.
It is at least the fifth time since November 2011 that the manufacturer has announced stock trading plans for executives.
Investors and analysts tend to pay close attention to the stock trading activities of top executives as a gauge for determining how much confidence the executives have in the company's current or future performance.
The latest plan includes Debra Crew, president and chief operating officer of R.J. Reynolds Tobacco Co.
Besides Cameron and Crew, the following are executives who filed plans to sell common shares received under the company's long-term incentive program. Unless otherwise noted, the executives' main duties are for Reynolds American.
Michael Auger, executive vice president of trade marketing, R.J. Reynolds Tobacco Co.; Lisa Caldwell, chief human resources officer; Daniel Fawley, treasurer; McDara Folen, deputy general counsel and secretary; Andrew Gilchrist, chief financial officer; Nancy Hawley, executive vice president of operations, R.J. Reynolds; Daniel Herko, executive vice president of research and development, R.J. Reynolds; Martin Holton III, general counsel; and Frederick Smothers, chief accounting officer.
The aggregate number of shares to be sold is not expected to exceed 400,000, compared with 85,000 in the November 2015 announcement and 150,000 in the September 2014 announcement.
The final number of shares to be paid will be determined based on the performance of Reynolds and its operating companies on certain performance measures during the vesting periods.
Cameron's shares would be paid to her in May 2017 in settlement of the performance shares granted to her in May 2016.
Some of Crew's shares will be paid to her in October in settlement of the make-whole award of restricted stock units granted to her in October 2014 as part of her hiring. The remainder of her shares will be paid to her in March.
Shares will be paid to the other executives in March in settlement of the performance shares granted to them in March 2014. Shares paid to the executives will be sold by them to the extent provided in their respective plans.
The executives are subject to share-ownership guidelines. Until these guidelines are met, executives are required to retain 50 percent of the after-tax shares earned under Reynolds' long-term incentive program, assuming taxes of 50 percent.
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