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Executive Stock Sale Restrictions Following Corporate Share Buybacks.

This Act aims to align executive compensation with sustainable long-term company value creation. It prohibits executive officers from selling or transferring stock received as compensation if the company authorized a share repurchase within the preceding year, or if fewer than three years have passed since the stock was granted. These changes are designed to encourage executives to make decisions that benefit long-term growth, indirectly protecting investor interests and market stability.
Key points
New rules for executives: Prohibition on selling compensation stock if the company authorized a share buyback within the preceding one-year period.
Holding period requirement: Executives must wait at least three years from the grant date of the compensation stock before they can sell it.
Increased transparency: Companies must publicly disclose a share repurchase authorization no later than one business day after it occurs.
Exceptions: The sales prohibition does not apply to transactions related to change of control, inheritance, tax obligations, or specific medical/educational expenses.
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Additional Information
Print number: 118_S_790
Sponsor: Sen. Warner, Mark R. [D-VA]
Process start date: 2023-03-14
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OFFICIAL LEGAL TITLE

ALIGN Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_790.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-03-14.

What are the main provisions?

Key points include:

  • New rules for executives: Prohibition on selling compensation stock if the company authorized a share buyback within the preceding one-year period.
  • Holding period requirement: Executives must wait at least three years from the grant date of the compensation stock before they can sell it.
  • Increased transparency: Companies must publicly disclose a share repurchase authorization no later than one business day after it occurs.
  • Exceptions: The sales prohibition does not apply to transactions related to change of control, inheritance, tax obligations, or specific medical/educational expenses.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Warner, Mark R. [D-VA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Economy