Form 4: Ares Management CEO Michael Arougheti Sells Shares Under 10b5-1 Trading Plan

Ares Management Corp's CEO, Michael J Arougheti, executed multiple sales of Class A Common Stock between August 28 and August 30, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Michael J Arougheti, Co-Founder, CEO, and President of Ares Management Corp, sold shares of Class A Common Stock between August 28 and August 30, 2024.
• The sales were executed under a 10b5-1 trading plan adopted on December 14, 2023.
• The transactions involved multiple sales at varying prices within specified ranges.
• Arougheti sold shares both directly and indirectly through Atticus Enterprises LLC.
• The reported transactions also indicate Arougheti directly owns 1,375,000 restricted units granted under an equity incentive plan, each representing the right to receive one share of Class A Common Stock upon vesting.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document simply reports transactions under a pre-existing trading plan. There's no indication of positive or negative implications for the company.

Industry Context

Insider sales are a common occurrence, especially when executed under pre-arranged trading plans like 10b5-1. These plans allow insiders to sell shares over a period of time without being accused of trading on material non-public information. The market typically views these sales in the context of the overall trading plan and the insider's remaining holdings.

Comparison to Industry Standards

• Comparing Arougheti's transactions to other asset management CEOs, similar sales under 10b5-1 plans are frequently observed.
• For example, executives at Blackstone and Apollo Global Management also utilize such plans for orderly disposition of shares.
• The size and frequency of these sales are generally benchmarked against the executive's total holdings and the company's trading volume to assess potential market impact.

Stakeholder Impact

• The sales could have a minor impact on shareholders due to the increased supply of shares in the market, but the impact is likely to be minimal given the pre-arranged nature of the sales and the overall trading volume of Ares Management Corp.

Key Dates