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We had reported earlier this weak about Facebook’s employees allowed cashing in on 20% of their stock options at a valuation of $4 billion but Business Week has come out with more information about the transactions that are already taking place. Among them are the names of, founder Mark Zuckerberg and executive Matt Cohler who recently called it quits on Facebook.

It adds:

Laurence Albukerk estimates "dozens" are peddling stock altogether, through him or other brokers. Another finance executive, who would not speak for attribution, confirmed Facebook insiders are selling. Among those who have sold are CEO Mark Zuckerberg and executive Matt Cohler.

The problem here appears to be that these employees are selling their stocks at$5 billion valuation, higher than the company’s internal valuation of $3.75 billion. This might very well force Facebook to raise the bar on its valuation. In order to hit back at this situation, Facebook has asked its employees leaving the company to sign an agreement that says they won’t sell their stocks higher than the valuation put up by the company.

What could the reasons be for this restriction? Perhaps to prevent employees from selling their stocks thinking that their stocks are worth more at present and on the other hand help Facebook put down any chances of raising its current valuation. This signals higher tax rates for employees disabling Facebook from recruiting talent that can be utilized for Facebook’s success.

Personally it appears Facebook has run head-on into some serious issue here and its trying everything possible to bring this under control; sooner the better appears to be the call of the day.