Last week three people illustrated how you get rich from being a director of a publicly traded company: get given stock or options and sell when the price is high.

Mike Ververka, the boss of online lottery company Jumbo Interactive (ASX:JIN), made $2.2m by converting options into stock and then selling up.

He’s made a cash profit of $17.7m since September last year, from exercising options he received as incentives to grow the company.

His options were worth $3.50 when he received them but on Friday the Jumbo share price was $16.80.

 

At bike dashcam maker Cycliq (ASX:CYQ), chairman/CEO Chris Singleton also got some incentives as well as stock as an interest payment on a loan he’d made to the company.

The incentive shares were worth a solid $68,827 — 0.7c — when the stock was trading at 0.3c on Friday. The interest shares were also priced at 0.7c.

Cirralto (ASX:CRO) managing director Adrian Floate is still on the journey, but has the right idea.

He’s being partly paid in stock: $103,996 worth.

The stock he was paid is worth slightly more than the market price of the shares — 0.95c versus 0.8c — much like with Singleton. If both men are confident in where their companies can go, it’d be well worth holding on a selling once the share prices have some upwards momentum.

Three of the largest buyers last week were picking up stock on market — that is, paying for it out of their own pocket because they want to, not because the company is raising money or giving away free stuff.

The buying was led by one of the few women to ever appear among the big director traders, Katrina Doyle at Alcidion (ASX:ALC).

Given the health software maker has been on a massive run since mid-April, Doyle didn’t exactly time her purchase well.

She bought on April 26, eight days after Alicidion’s share price took off after two years in the wilderness.

But not to worry: on Friday it was still climbing.

Two directors were selling on market.

One of those sellers, Justin Osborne at Gold Road (ASX:GOR), said he was only selling to pay off a tax bill.

Johns Lyng Group’s (ASX:JLG) Adrian Gleeson didn’t say why he sold $404,000 of stock.

Code Company Director Change Date Volume $ What Total holdings controlled
JIN Jumbo Interactive Mike Veverka Buy 23-30 April 250,000 $3,072,125 Exercise of options 9656848
ATS Australis Oil & Gas Jonathan Stewart Buy 30 April 2,857,143 $1,000,000 Placement 65835002
JLG Johns Lyng Group Adrian Gleeson Sell 24 April 130,000 $404,427 On market 1,442,517
MPR MPower Group Nathan Wise Buy 1 May 6,663,461 $346,500 Placement 77,071,518
GOR Gold Road Resources Justin Osborne Sell 30 April & 1 May 184,175 $171,060 On market 4381235
ALC Alcidion Group Katrina Doyle Buy 26 April 2,000,000 $165,400 On market 33156347
ASG Autosports Group Nicholas Pagent Buy 17-18 April 138,000 $165,398 On market 104,452,574
DUB Dubber Corporation Peter Pawlowitsch Buy 24 April 263,157 $100,000 On market 3409348
CRO Cirralto Adrian Floate Buy 2 May 10,947,013 $103,996 Shares in lieu of director fees 55,870,291
CYQ Cycliq Group Chris Singleton Buy 1 May 14,475,286 $101,327 Shares as incentives and as interest on a loan. 22,575,286
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