Mulally sells big chunk of stock

Published 9:00 pm Thursday, August 11, 2005

This is what I get for not checking the EDGAR filings more often — the Associated Press reports that Boeing Commercial Airplanes chief Alan Mulally has sold about $3.8 million worth of his Boeing stock.

Mulally, of course, was the top internal candidate for the CEO job that went to Jim McNerney. Since McNerney’s hiring, Mulally has said and done all the right things about working with the new guy, but some analysts are watching for signals that Mulally’s going to leave — like maybe liquidate a big bunch of stock.

Boeing spokesman Peter Conte downplayed that, saying Mulally just wants to re-balance his personal investment portfolio. And, well … Boeing shares ARE trading pretty high right now, so this would be a good time to cash some out.

http://www.forbes.com/business/commerce/2005/08/12/boeing-ceos-shareholders-cx_gl_0812autofacescan06.html

Key Quote, from the Forbes story on it: “According to The Associated Press, securities filings show Mulally sold 57,494 shares at $66.20 each. Of those shares, some 20,000 were from stock options that he exercised at the same time for $41 per share; the balance were from his personal holdings.”

What’s it all mean? I dunno, but next time I talk with Alan I’ll ask him. I’m not a math whiz, but $66.20 minus $41 times 20,000 shares DOES seem like a nice return on assets.