A Microsoft rep told MarketWatch the company filed the insider sales late because of an administrative error, but is now compliant though SEC late-filing procedures. The rep also said Bach's sales were not related to the Xbox 360 repair announcement.

It certainly isn't illegal for a company executive like Bach to sell stock, but the issue of whether the exec sold the stock due to insider information and thus benefited isn't always clear. In Bach's case, Microsoft's stock didn't move much following the announcement, more or less clearing the division president of any illicit implications.