I have wondered if the SEC could finesse this by saying "Ok, you can stick with your 'I didn't know' defense and we'll drop the insider trading case but we'll require that the company separate you for cause and invalidate all post separation agreements." (aka the golden parachutes).
Since the benefits of such contracts often dwarfs the value they receive from trading it should help 'remind' them of what they did and didn't know. But they should not be allowed to have it both ways.
Since the benefits of such contracts often dwarfs the value they receive from trading it should help 'remind' them of what they did and didn't know. But they should not be allowed to have it both ways.