Gary Friedman, RH.com CEO, to sell his expiring stock options

B3GIN Team
12/12/22
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RH (NYSE: RH) announced today that its Chairman and CEO, Gary Friedman, plans to sell approximately 0.7 million shares of common stock. These shares are related to 1.0 million options that are set to expire in connection with the ten-year anniversary of the grant date of July 2013.

RH (formerly known as Restoration Hardware – NYSE:RH), a luxury home furnishings company, has announced that its Chairman and CEO, Gary Friedman, plans to exercise expiring stock options.

Gary Friedman has been with RH for over two decades and has played a key role in the company’s growth and success. He took the helm as CEO in 2001, and under his leadership, the company has transformed from a small catalog business into a multi-billion dollar luxury home furnishings brand. Friedman has been instrumental in the company’s expansion into physical retail stores and the development of its e-commerce platform. He has also overseen the launch of several new product lines and the acquisition of several other luxury home furnishings brands.

The stock options that Friedman plans to exercise are set to expire in July, and are part of a larger package of options that were granted to him.

Friedman is expected to sell around 70% of the 1 million shares of RH stock expiring. 

By exercising these options Friedman will be able to pay the actual exercise of the shares and satisfy his tax obligations. 

Exercising the options might have an impact on the company’s stock price. When one exercises stock options, it can create a large number of new shares that are available for trading on the market. This can dilute the value of existing shares and cause the stock price to decrease.

The company’s current financial performance is strong. In its most recent earnings report, RH reported that its revenue and net income for the third quarter of 2021 both increased significantly compared to the same period last year. The company also announced that it expects its fourth-quarter revenue to be even higher.

At the time of writing, the value of one share (NYSE:RH) is $275.

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