Wilson Sonsini Goodrich & Rosati is pleased to share "10b5-1 Trading Plans: Practical Considerations for Company Insiders," a report written by members of the firm’s public company, capital markets, and securities litigation practices.

Directors, officers, and other company insiders often receive a meaningful portion of their overall compensation through equity awards. As these awards vest, these insiders may seek to liquidate some or all of their underlying stock to access cash and diversify their investments. However, insiders may find it difficult to liquidate their company stock because they are subject to certain legal and company-imposed restrictions that limit their ability to sell company stock.

If you are a company director, officer, or other insider, and the above situation is relevant to you, you may be considering a 10b5-1 plan. In this report, we outline practical considerations that will assist you in navigating the decisions with which you may be faced in implementing a 10b5-1 plan. These considerations relate to, among other things, entering into a 10b5-1 plan generally, developing trading instructions, amending or terminating a 10b5-1 plan, and using a third party, such as a broker, to administer the 10b5-1 plan.

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