Two top executives at Apollo Group Inc. (APOL) have adopted prearranged stock trading plans, giving up discretion over when they sell shares as the for-profit college operator faces scrutiny over its insider trading policies.

Executive Chairman John Sperling, founder of Apollo, and his son Vice Chairman Peter Sperling announced in a Securities and Exchange Commission filing Monday that they adopted 10b5-1 plans, under which sale of their stock will be done via a broker in prearranged transactions based on pricing or timing.

The Sperlings were the subjects of a New York Times article Sunday tying certain of their stock sales to specific developments in a U.S. Department of Education investigation into financial aid practices at Apollo's University of Phoenix. According to that article, the Sperlings sold nearly 1.1 million shares in late January 2009, shortly after the department notified the company of student complaints about disbursements of student loans. The article said they sold another 2.1 million shares in July 2009, soon after the company may have received a draft of the department's findings.

A representative for Apollo wasn't immediately available for comment.

Oct. 26, Apollo disclosed that the SEC has asked the company for information on its insider-trading policies and procedures, as well as a chronology of its internal processing and availability of information regarding the Department of Education's review. The SEC launched an informal inquiry into Apollo last fall, first asking for information on the company's revenue recognition practices.

An SEC representative declined to comment.

BMO Capital Markets analyst Jeff Silber said in a client note early Monday the move by the Sperlings is a positive one, as it "can hopefully lessen any expected controversy over future insider sales."

-By Melissa Korn, Dow Jones Newswires; 212-416-2271; melissa.korn@dowjones.com
Apollo Education Group, Inc. (NASDAQ:APOL)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Apollo Education Group, Inc. Charts.
Apollo Education Group, Inc. (NASDAQ:APOL)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Apollo Education Group, Inc. Charts.