Edwards Lifesciences, a provider of products and technologies to treat cardiovascular disease, has reported that its Chairman and CEO, Michael A. Mussallem, has adopted a pre-arranged stock trading plan under Rule 10b5-1 of the Securities and Exchange Act of 1934, which replaces a similar plan that expired in March.
The new plan will provide a vehicle for Mussallem to exercise Edwards’ stock options due to expire in 2010, according to the Irvine, Calif.-based company.
Rule 10b5-1 stock trading plans allow corporate executives to adopt written, pre-arranged stock trading plans to buy or sell a specified number of shares of company stock, and such plans may minimize any market effect of stock sales or purchases by spreading them out over an extended period of time, Edwards said.
The new plan provides for the exercise and sale of up to 14,000 shares per month, the company said.
Edwards also noted that Mussallem is presently in full compliance with the company's stock ownership guidelines for its executive officers and intends to remain in compliance throughout this stock trading plan. Under the guidelines, Mussallem is required to own shares of company stock with an aggregate market value equal to six times his base salary, and transactions under this plan will be disclosed publicly through Form 144 and Form 4 filings with the U.S. Securities and Exchange Commission (SEC).