Power Integrations Inc. (San Jose, CA) announced that its board of directors has approved an amendment to its insider-trading policy. The amendment permits its officers, directors and certain other employees, subject to Power Integrations’ policy, to enter into trading plans that comply with the requirements of Rule 10b5-1.
Rule 10b5-1 allows corporate insiders to establish prearranged plans to sell a specified number of shares of company stock over a predetermined period of time. Insiders may adopt such plans when they are not in possession of material inside information in order to gradually diversify their investment portfolio, to minimize the market effect of stock sales by spreading them out over an extended period of time, and to avoid concerns about initiating stock transactions while in possession of material nonpublic information. While no trading plans have been implemented to date, Power Integrations anticipates that some of its insiders will adopt such plans in the near future.
