NU Online News Service, May 5, 5:20 p.m. EDT--The head of Willis Group Holdings has agreed to a stock divesture plan that would reduce his holdings in the insurance brokerage firm to more than two million shares.
Under the plan, Joe Plumeri, chairman and chief executive officer of the London-headquartered insurance brokerage firm, will sell 2.35 million shares of his common stock holdings in installments beginning in June. He will hold approximately 2.4 million shares and options after the sale is completed, Willis said.
The pre-arranged, personal trading plan is in accordance with Securities Exchange Act rule 10b5-1, Willis said. The rule permits insiders to sell fixed portions of their holdings over a designated period of time by establishing pre-arranged written plans at a time when they are not in possession of material non-public information.
In the company's 2005 proxy statement, the Compensation Committee of the Company's Board of Directors indicated that, although Willis utilizes its stock and options as a significant element of compensation for employees, the committee encouraged Mr. Plumeri, and other executive officers, to consider regularly disposing of portions of their Willis stock in order to diversify their assets.
Mr. Plumeri's sale would be worth more than $84 million subject to today's closing price of Willis' shares at more than $35 a share.
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