The year 2020 has made Peloton’s CEO and cofounder a wealthy person following Peloton’s rapid stock rise as the COVID-19 pandemic sent demand for Peloton products higher and higher.
After hitting a high of $131.93 earlier this fall, Peloton stock has fallen mainly due to increased shipping lead times and COVID-19 vaccine news. The stock sale by Foley was planned for some time as C-level executives aren’t selling company shares with Robinhood. As noted by an informed Reddit user, this sale had been planned for a few months.
The fun part of public companies is this is public information. Accordingly to the Form 4, he entered into this 10b5-1 plan back on September 22, 2020. He had absolutely no control that the sales were made today.
It looks like these shares came from a flip of his Class B Common Stock (which he has held over one year) into Class A common stock on a 1-to-1 basis (pretty typical in IPO companies, particularly if they were an Up-C structure). He held those shares for over a year (they were included on the Form 3 filed at the IPO last September), so he would get long-term capital gains on this sale and not be subject to ordinary income.