Tenet Executive Chair and CEO Ronald Rittenmeyer sold 408,526 shares of the Dallas-based company, according to a Dec. 14 filing with the Securities and Exchange Commission.
Mr. Rittenmeyer sold the shares Dec. 10 for an average price of $40 a share. The total sale was $16.3 million, according to GuruFocus. The proceeds of the sale of the options to Mr. Rittenmeyer amounted to $9.6 million, or $5.8 million on an after-tax basis, Tenet spokesperson Lesley Bogdanow said in an email to Becker's Hospital Review.
Mr. Rittenmeyer sold the shares on the same day Tenet announced it was acquiring up to 45 ambulatory surgery centers from Towson, Md.-based SurgCenter Development. The company's shares closed Dec. 10 at $42.78, up more than 22 percent from a day earlier, according to Yahoo Finance. The share price hitting $40 is what triggered the sale under a trading plan Mr. Rittenmeyer entered into earlier this year, Ms. Bogdanow said.
"Mr. Rittenmeyer entered into a 10b5-1 trading plan earlier this year when he was not in possession of material, non-public information. The plan provided for the exercise and sale of options he received when he first joined as Interim CEO in 2017," Ms. Bogdanow said in an email to Becker's Hospital Review. "The share price trigger was set at $40, representing an over 50% increase in value from the date he entered into the plan. Mr. Rittenmeyer had no control of the timing of the sale as it was based solely on the share price passing the $40 threshold."