Www.InStop.us is a web site created by Lou Rorimer, a Partner in Jones Day's Employee Benefits & Executive Compensation Practice, to give Companies, employees, and their advisors a strategy for dealing with the Diversification Dilemma:
The Problem:
- Employees sometimes need to diversify
- But inside information can expose them to liability and spoil their plans
- And unplanned trades can create negative market perception
Before, there was a Partial Solution:
- Conventional Rule 10b5-1 plans address the problem
- But multiple formats and parties complicate administration
- And Company involvement in credit arrangements raises legal concerns
InStop Offers the Complete Solution:
- InStop lets employees plan their sales with their own advisors, then use InStop to create trading plans and submit them for Company approval when they do not have inside information
- A uniform format puts the Company in a position to preclear plans efficiently
- The individuals are responsible for executing their own trades according to their plans
InStop presents standard plan terms in the form of a set of instructions for employees who use the program. This approach permits the Company to administer multiple plans consistently. The Company is able to tailor the instructions to fit any desired brokerage arrangements and match its equity compensation plans.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
