Super Micro Computer’s stock price surged after the company announced it had resolved financial reporting issues with Nasdaq. However, several top executives, including cofounder Sara Chiu-Chu Liu Liang and senior vice president George Kao, have been cashing out of their shares.
Liang, wife of CEO Charles Liang, sold 46,293 shares worth $2.3 million, bringing her personal holdings to zero. Kao dumped 71,720 shares for $3.6 million. Both received thousands of restricted stock units that will vest over the next four years.
The company’s CEO Charles Liang was granted 1 million stock options after meeting revenue goals. His wife indirectly holds more than 67 million shares through her husband. Super Micro is under scrutiny due to its close ties with Nvidia and recent accounting allegations.
A short-seller report from Hindenburg Research sparked the issues, which led to EY’s auditor quitting over concerns about management integrity. The company has since hired BDO USA as its new auditor. Despite resolving financial reporting issues, Super Micro faces ongoing investigations and at least five lawsuits due to delayed filings.
Source: https://finance.yahoo.com/news/super-micro-insiders-dump-millions-090300021.html