Jaroslav Suk of CEZ partially exercised his option plan for 20,000 shares, thus leaving him with option for another 55,000 shares. Option plan allowed him to buy shares for CZK 243 and sell immediatelly at market price of CZK 812.
Our view:
Option plan is typical way to motivate the management of companies. Nonetheless AGM approved change of CEZ’s motivation program due to significant increase of stock price since 2004. Modified conditions which allow management to book a profit of maximum 100% in comparison to previously unlimited will be applied to new entrants to the option program. We see this news as slightly negative however we don’t expect the price would react to the news.