Marc Lore, CEO of Walmart U.S. eCommerce, entered into a new stock trading plan to sell 710,000 Walmart shares between December and April 2022. The plan is designed to comply with Rule 10b5-1 of the Securities and Exchange Act of 1934.
Details of when the transactions will take place were spelled out Monday (Sept. 14) in a filing with the U.S. Securities and Exchange Commission. The filing said Lore’s plan is part of an individual long-term asset diversification, tax, and financial planning strategy, and is in accordance with Walmart’s Insider Trading Policy. Under the terms of the plan, Lore will have no discretion or control over the timing or effectuation of any transactions in company securities pursuant to the plan.
Lore will execute one scheduled sale transaction on a specified date each month from December 2020 through April 2022. He is scheduled to sell 90,000 shares in December 2020, 35,000 shares each month from January 2021 through April 2021, and 40,000 shares each month from May 2021 through April 2022.
Walmart said the maximum aggregate number of shares to be sold under the Plan is 710,000. Lore is under an agreement he signed in November 2019 which is set to expire in November. Lore has been actively selling shares of Walmart stock this year totaling more than $51.465 million as of July 7. Between March and July, Lore sold more than 425,000 shares of his Walmart holdings which did comply with the stock trading agreement from last year.
In August, Lore sold 85,000 shares valued at $10.963 million. In September, Lore sold 85,000 shares with a value of $11.767 million. Year-to-date, Lore has cashed out more than $74.195 million of his Walmart holdings. Lore’s personal stock holdings as of Sept. 10 totaled 1,707,160 shares valued at roughly $239 million.
Many of the shares resulted from the $3.3 billion Lore received for his interest in Jet.com, which Walmart acquired in August 2016 and has now folded into Walmart.com. He also regularly receives shares as deferred compensation for his CEO role.
Walmart noted in the recent filing Lore continues to be subject to the company’s stock ownership guidelines that require him to hold company stock equal in value to at least five times his annual base salary of roughly $1.2 million.
If Lore fulfills his new stock trading plan through April 2022, he will have sold roughly 1.305 million of his shares in Walmart, not including shares routinely liquidated for tax purposes.
Shares of Walmart (NYSE: WMT) closed Monday at $137.32, up 62 cents on the day. Walmart stock price is up more than 15.5% year-to-date.