On Yahoo Finance profile of a stock along with executive pay, what does "exercised" mean.?

Question

I'm thinking it's options they cashed out. Is it a bad sign if they exercised a lot? Thanks.

Answer 1

You're right, it's options they have cashed out. To determine if it's a bad sign or not, you have to look at the total picture. If they have cashed out 1000 shares but they own 100,000 shares, that's not particularly signficant. But if they are selling ALL or almost all of their shares, along with other top executives, it's cause for concern. It's also cause for concern if the company is giving out stock options like they are junior mints.