Reed Hastings, the chief executive of Netflix Inc. and a Facebook Inc. board member, disclosed that on Thursday 9th August he had purchased around $1 Million (£637’889) in Facebook stock reports the Wall Street Journal.
The Netflix CEO’s only equity prior to the purchase was 20’000 restricted stock units he was given when he originally joined the Facebook board in June 2011.
In fact, it would appear that Reed Hastings is the only Facebook board member to have disclosed his stock purchase since Facebook’s original public offering.
Whilst Facebook doesn’t require or state as part of their contract that directors must purchase shares when they join the board, it’s certainly encouraged as it shows a vote of confidence and that they have faith in the brand/company.
Facebook’s shares were valued at $21.81/£13.91 each which is markedly less than the value at Facebook’s initial offering of $38/£24.23 each.
Source: Wall Street Journal