Publications
Publications
- April 2000 (Revised July 2000)
- HBS Case Collection
Ameritrade Holding Corporation
By: Lisa K. Meulbroek
Abstract
Some of the senior managers at Ameritrade, an Internet brokerage firm, are selling their holdings in the firm. Why are the managers selling, how will it affect shareholders, and what should the CEO do about it? The CEO is concerned that the market will interpret managerial sales as a signal that the managers believe the firm to be overvalued. He also wonders whether the sales might interfere with the firm's plan to raise funds in the capital markets. Finally, he thinks that, at a minimum, such sales undermine a carefully thought-out compensation plan that pays managers with stock options to align managers' incentive with those of the shareholders.
Keywords
Citation
Meulbroek, Lisa K. "Ameritrade Holding Corporation." Harvard Business School Case 200-057, April 2000. (Revised July 2000.)