TORONTO, Dec. 11, 2012 /CNW/ - CIBC (TSX:CM) (NYSE: CM) announced today that, as in previous years, President and CEO Gerry McCaughey has established a pre-arranged plan for the automatic exercise of options. In 2013, Mr. McCaughey will exercise up to 315,420 options. The shares acquired on the exercise of options would be sold automatically.
As in prior years, these transactions will occur throughout 2013, subject to the price of CIBC's common shares meeting or exceeding pre-determined exercise prices, allowing for an automatic process.
Mr. McCaughey currently holds CIBC share units well above the minimum requirement under CIBC's share ownership guidelines of six times his base salary, and will continue to do so during and after the execution of this plan. Mr. McCaughey is conducting these transactions for personal financial planning purposes.
These types of automatic plans allow participants to exercise options and sell shares on a pre-determined basis. The participant has no discretion to alter the terms of that arrangement or influence the execution of the plan. Appropriate filings reporting the sales will be made with securities regulatory authorities within the required time frame.
The plan was established in accordance with the guidelines of the Ontario Securities Commission and the rules of the United States Securities and Exchange Commission, as well as CIBC's policies on exercising options and selling shares held by directors and officers.