8-KOther Events

Ares Management Corp 8-K Report, Corporate Update (Mar 11, 2022)

Filed March 11, 2022For Securities:ARESARES-PB

Summary

Ares Management Corporation (ARES) announced that R. Kipp de Veer, an executive officer and director, has entered into a Rule 10b5-1 trading plan to sell up to 281,498 shares of Class A common stock. This plan, established for estate planning purposes, was adopted during an authorized trading period and without the possession of material non-public information. Trading under the plan is scheduled to commence no sooner than July 6, 2022, and will conclude by February 1, 2023, or earlier if all shares are sold. The company is not obligated to report on other individual insider trading plans unless required by law. Investors should note that Rule 10b5-1 trading plans allow insiders to pre-arrange the sale of company stock at a predetermined time and price, providing a defense against accusations of insider trading. While this particular plan is for estate planning, the sale of a significant number of shares by a key executive could be perceived by the market. The company will disclose transactions through Form 144 and Form 4 filings.

Key Highlights

  • 1Executive R. Kipp de Veer entered into a Rule 10b5-1 trading plan to sell up to 281,498 ARES shares.
  • 2The plan was established on March 7, 2022, and is set to expire on February 1, 2023.
  • 3Trading under the plan can begin no earlier than July 6, 2022.
  • 4The stated purpose for the trading plan is estate planning.
  • 5The plan was adopted during an authorized trading window and without material non-public information.
  • 6Transactions made under this plan will be publicly disclosed via Form 144 and Form 4 filings.

Frequently Asked Questions

A Rule 10b5-1 trading plan is a written document that allows company insiders, like executives and directors, to pre-arrange the purchase or sale of company stock. It specifies the number of shares, the price, and the dates of transactions in advance, providing a defense against accusations of insider trading by demonstrating that the trades were planned when the insider did not possess material non-public information.

In this specific case, the Rule 10b5-1 trading plan for R. Kipp de Veer was established for estate planning purposes. These plans are often used by executives to diversify their holdings or to plan for future financial obligations without triggering insider trading concerns.

The filing states the plan was adopted for estate planning purposes and was implemented during an authorized trading period without possession of material non-public information. While the sale of a significant number of shares by an executive might raise questions, the Rule 10b5-1 plan structure is designed to mitigate concerns about insider trading. Investors should monitor the ongoing trading activity and the company's performance fundamentals.

Ares Management Corporation stated that other officers, insiders, and employees may establish similar Rule 10b5-1 trading plans from time to time. However, the company does not undertake to report on specific individual plans unless required by law. Any transactions will be disclosed publicly through Form 144 and Form 4 filings.