While executive stock sales are continuing to rise, the Securities and Exchange Commission has begun to consider stronger rules in order to protect CEOs and other bigwigs from insider trading.

This set of rules provides a safe haven for corporate insiders. It also allows companies to trade equity in their portfolio management plans. Executives are better protected from any future allegations of insider trading by declaring when and how they intend to trade in advance.

SEC Chairman Gary GenslerOn Wednesday, the Exchange Act Rule Rule 10b5-1 he is concerned doesn’t take enough. These changes follow a banner year for executive equity sales.

Gensler asks the SEC for a 120 day cooling off period for directors and company officers for portfolio management plans that have been modified or added to. An identical amendment would provide a 30-day cooling off period for stocks traded by companies.

In 2021, CEOs and corporate leaders like Satya Nadella from Microsoft and Jeff Bezos founders of Amazon and Tesla’s Elon Tesla sold record stock sales of $69 billion. According to InsiderScore/Verity, sales of insiders rose 30% over 2020 and 79% over a 10-year mean.

Most of the 2021 sales were concentrated in a handful of large sellers like Musk and Bezos (each selling around $10 billion).

It would ban the use of overlapping plans as well as limit single trade plans to one each 12 months. Gensler stated that executives have the option to create multiple portfolio management plans simultaneously, so they can choose the one or two that interests them most.

“The problem lies in the fact that these insiders have material information that is not available to the general public. How can these insiders sell or buy stock that is fair for the market? Gensler made prepared remarks.

“Over the past two decades, we’ve heard concerns about and seen gaps in Rule 10b5-1 — gaps that today’s proposals would help fill,” he added.

— CNBC’s Bob Pisani contributed to this report.