Glasscock to sell off stock as resignation looms

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WellPoint Inc. CEO Larry C. Glasscock plans to sell about $13.5 million in stock holdings over the next 10 months, the company announced late Friday.

The plan to diversify his holdings comes less than a month before Glasscock will resign his CEO post and hand the reins of the Indianapolis-based health insurer to Angela F. Braly. After June 1, Glasscock will remain as WellPoint’s chairman.

To unload his holdings, Glasscock has established a personal stock trading plan along lines laid out by Rule 10b5-1 of the Securities and Exchange Act of 1934. Such a plan allows Glasscock to make stock trades at predetermined times and price ranges, so he avoids making trades based on insider knowledge.

In a written statement, Glasscock said the stock sales were recommended by his financial advisers in order to diversify his assets.

I continue to firmly believe that WellPoint is well positioned for continued success in the coming years,” Glasscock said, adding that he “will continue to maintain significant ownership of WellPoint stock.”

According to a WellPoint proxy statement filed April 4, Glasscock holds 170,366 WellPoint shares and options that could be converted into another 1.1 million shares. If sold at Friday’s closing price, those holdings would fetch a combined $53.4 million.

In coming years, Glasscock is due to receive nearly 625,000 more shares in either stock or options. If sold today, those awards would be worth another $16.7 million.

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