We explore whether acquiring CEOs and directors act consistently with the idea that their newly announced acquisitions will increase long-term firm value. Specifically, we examine post-announcement adjustments to CEOs' equity-based holdings and find acquiring CEOs tend to exercise options and sell firm stock following acquisition announcements. Moreover, positive short-term market performance exacerbates this effect. Further, we find directors tend to grant their acquiring CEOs stock options, post-acquisition announcement, presumably to more tightly align CEO-shareholder interests. These findings suggest CEOs and directors manage acquiring CEOs' equity-based holdings such that they do not appear to anticipate long-term value creation from their acquisitions.