Domino’s Pizza has confirmed that its CEO, Don Meij, has a margin loan.
Last week the company advised that Meij sold a total of 433,463 shares in Domino’s. The majority of the funds were to be used to satisfy Meij’s tax obligations under a share option plan.
Today, Domino’s said: “The company confirms that it considers that at no time has there been a risk of triggering a margin loan associated with the Managing Director.”
The Australian Financial Review reported that Meij had five margin lending facilities listed with the Australian Government’s Personal Property Securities Register.
“The Company reiterates that it has not bought shares under the share buy-back program at the same times at which Mr Meij was selling shares,” Domino’s said.
At the half year report, Domino’s said it had completed a share buy-back of $87.1 million over the six months to December.
Meij, who started his career as a delivery driver and led Domino’s to an IPO in 2005, has gathered almost $50 million from share sales since August last year.
He currently holds 1,843,344 shares, either in his own name or that of the Meij Family Trust, valued at more than $73 million at today’s price of $40 a share. That’s about 2.1% of the company.
A short time ago, the shares were at $40, down 2.4% today.