Quintiles (NYSE:Q) President and Chief Operating Officer John Ratliff is cashing out some stock in the company before he leaves the company at the end of the year.
Ratliff net just over $9 million from selling 212,140 shares at $42.55 in transactions that occurred on Nov. 18, according to securities filings. Quintiles disclosed earlier this month that Ratliff tendered his resignation on Oct. 30 from his executive posts and board membership. His resignation from the board was effective immediately but he will stay on in his executive role until Dec. 31.
“Mr. Ratliff’s resignation was a personal decision and was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices,” Quintiles said in securities filings at the time. “The Board accepted Mr. Ratliff’s resignation and noted appreciation for his contributions and service to the Company.”
In addition to selling Quintiles stock, Ratliff also bought more shares. Filings show that he exercised options to acquire 75,000 shares at the exercise price of $6.61. He also exercised options to buy 40,000 shares at $5.76. Those options were set to expire in 2016. Ratliff still has unexercised stock options that don’t expire until 2016.
Ratliff stands to gain even more cash. When he leaves Quintiles, he will be entitled to receive severance from the company, according to a supplement to his employment agreement that was made earlier this year before the company went public. Ratliff’s agreement was amended in April to add that if he retires, decides not to renew his employment agreement or voluntarily leaves Quintiles, he will be entitled to the same benefits owed as if he had been terminated without cause. Those benefits include cash severance, insurance benefits and executive allowance benefits.
Quintiles spokesman Phil Bridges said that like many companies Quintiles has various incentive programs for eligible employees that include stock ownership and stock options. But he added that it is not appropriate for the company to comment on individual trades of the company’s stock. Bridges said that the company does not have any update on a successor to Ratliff.
Ratliff has worked for Quintiles since 2004, first serving as chief financial officer. He was named COO and appointed to the company’s board in 2006. Quintiles named Ratliff president in 2010.