In afternoon trade, the Domino's Pizza Enterprises Ltd (ASX: DMP) share price is edging higher despite some negative news.
At the time of writing, the pizza chain operator's shares are up 0.5% to $49.19.
Domino's share price higher despite insider selling
The Domino's share price is rising today despite the company revealing that its CEO, Dom Meij, has made a major share sale.
According to the release, Meij sold 150,000 Domino's shares via an on-market trade on 23 February.
The Domino's boss received an average of approximately $55.35 per share, which is 12.5% higher than the current share price, and represents a total consideration of $8.3 million.
It is worth noting that Mr Meij still has a considerable holding, so his interests remain firmly aligned with shareholders. Following the sales, the CEO holds a total of 1,667,969 Domino's shares.
Why did the Domino's boss sell shares?
Domino's has provided an explanation for the sales. It revealed that the funds from these share sales will be used to take a prudent approach to reduce Mr Meij's personal borrowings in a period of rising interest rates.
The company also stressed that Meij is committed to the company. It highlights that he recently signed a five-year employment contract and Brisbane remains his principal place of residence.
Mr Meij also commented on the share sales. He said:
I appreciate there is no ideal time to sell any shares, but my long-term track record shows my alignment with the future of our business and interests of shareholders and franchisees. I'm looking forward to our team delivering an improved performance this Half, and on our long term goals, and I will be leading that effort.