Broadcom (AVGO.US) Chairman Plans To Sell Up To $500 Million Of Company Stock; Shares Have Dropped 16% So Far This Year

Henry Samueli, chairman of Broadcom (AVGO.US), recently established a plan to sell a significant amount of company stock while making charitable donations. According to a filing Broadcom submitted to the U.S. Securities and Exchange Commission late Wednesday, Samueli established a 10b5-1 trading plan for D95GT LLC on December 18, 2024, which allows the sale of up to $500 million of Broadcom stock between March 26 and December 31, 2025. The plan also allows Samueli's Samueli Foundation, which he and his wife Susan Samueli co-founded, to sell up to $127.6 million of donated Broadcom stock between March 27 and December 31. The 10b5-1 trading plan is designed to eliminate the potential for trading bias due to the possession of non-public information, and automatically executes trades when pre-set price, volume, and time conditions are met. Under the plan, D95GT LLC will donate up to $102.6 million of Broadcom stock to the Samueli Foundation between March 26 and December 30, while Samueli's other investment company, H&S Investments I LP, will donate up to $25 million of Broadcom stock to the foundation between June 25 and December 30. The Samueli Foundation will sell these donated stocks between March 27 and December 31, according to the trading plan. The plan also allows D95GT LLC to donate up to $1.25 million of Broadcom stock to an unnamed charity between December 8 and December 30. While Broadcom's stock price doubled in 2024, up 23% from the S&P 500 index, it has since fallen 16% as of the current date, while the S&P 500 index has fallen 5%.