(The Associated Press circulated the following on April 4.)
NEW YORK — The chairman and chief executive of railroad operator Kansas City Southern exercised options for 36,000 shares of common stock under a prearranged trading plan, according to a Securities and Exchange Commission filing.
In a Form 4 filed with the SEC Thursday, Michael R. Haverty reported he exercised the options Tuesday for $5.75 apiece and then sold all 36,000 shares on the same day for $40 apiece.
The stock sale was conducted under a prearranged 10b5-1 trading plan which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material non-public information.
Insiders file Form 4s with the SEC to report transactions in their companies’ shares. Open market purchases and sales must be reported within two business days of the transaction.
Kansas City Southern is based in Kansas City, Mo.