On Monday, Pfizer (PFE) and its partner BioNTech announced that their vaccine is 90% effective based on interim trial results. Shares of Pfizer surged 7.7% at the announcement, reaching $41.99 per share, the highest level it's seen since 2001.
On the same day, Pfizer’s CEO Dr Bourla sold 60% of his stock, which is worth $5.6 million and equal to 30% of his 2019 compensation. This was a predetermined decision taken in August and was part of “personal financial planning.” However, that doesn’t mean that the price of the stock in August (which is roughly the same as it is now) didn’t influence Bourla’s decision.
Under the 10b5-1 plan, major shareholders or insiders can place an order for a certain quantity to be executed in months or years. In that way, it is ensured that they do not take advantage of insider information to profit.