8-KOther Events

SOUTHERN CO 8-K Report, Corporate Update (Feb 7, 2008)

Filed February 7, 2008For Securities:SOSOJESOJFSOJCSOJDSOMN

Summary

This Form 8-K filing from Southern Company (SO) reports on a Rule 10b5-1 trading plan established by Michael D. Garrett, Executive Vice President and President and CEO of Georgia Power Company. The plan allows for the sale of up to 75,468 shares of Southern Company common stock, which will be acquired through the exercise of stock options. Investors should note that this plan is intended to comply with the company's insider trading policy and SEC Rule 10b5-1, which facilitates pre-scheduled stock transactions for executives. The sales are scheduled to begin in March 2008 and will continue until March 15, 2009, or until all allocated shares are sold. While this plan involves a significant number of shares, it is a pre-arranged sale and does not necessarily reflect negative sentiment about the company's future prospects. Southern Company also clarified that it is not obligated to report on all insider trading plans.

Key Highlights

  • 1Michael D. Garrett, an executive officer, has established a Rule 10b5-1 trading plan.
  • 2The plan allows for the sale of up to 75,468 shares of Southern Company common stock.
  • 3The shares to be sold will be acquired through the exercise of stock options.
  • 4Sales under the plan are set to commence in March 2008.
  • 5The trading plan has a termination date of March 15, 2009, or upon the sale of all designated shares.
  • 6The plan is designed to comply with the company's insider trading policy and SEC Rule 10b5-1.
  • 7Mr. Garrett is subject to executive stock ownership guidelines requiring him to hold stock valued at least three times his annual base salary.

Frequently Asked Questions

A Rule 10b5-1 plan is a written document adopted by an insider (like an executive or director) of a public company. It allows them to buy or sell a specified number of company shares at a predetermined time or price. These plans are designed to allow insiders to trade company stock without being accused of insider trading, as the trading strategy is established when the insider does not possess material non-public information.

Mr. Garrett is selling shares as part of a pre-arranged trading plan (Rule 10b5-1) to dispose of shares he will acquire through the exercise of stock options. This is a common practice for executives to diversify their holdings or manage their stock option exercises in a compliant manner, and it doesn't necessarily indicate concerns about the company's performance.

Under the plan, up to 75,468 shares of Southern Company common stock may be sold.

Sales are scheduled to begin in March 2008 and will continue until March 15, 2009, or until all 75,468 shares designated in the plan have been sold, whichever comes first.