I wondered why Rob de Groot, EVP at Reckitt Benckiser (RB., 2724p) had been buying so aggressively (GBP 3m+ in last two weeks) whereas Bart Becht has been selling.

If you look through the Annual Report, you’ll see that it is group policy for senior management to hold shares, thereby aligning themselves with shareholders. EVPs have to own 200,000 shares before they get any options or performance awards. 200,000 shares is a lot of $$, over GBP 5m at current prices. De Groot was appointed to EVP position in July 2008.

Just imagine how the attitude to risk would have changed if you had had to do that at Lehman, Bear or Merrill !!

Bart Becht has been selling down his exercised options. He exercised 600,000 options in June, and has sold 200,000 shares since. I’m sure he has more to go.

Neither of these sets of transactions can be used as signal on which to predict future share price performance.