eli5 if most company’s ceo are payed in stocks, what’s preventing them from literally doing insider trading
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As others have said, the CEO will publish their planned sales months ahead of time – sometimes to the point of having an entire year’s worth of sales published. If they deviate from that plan by even a single share, the SEC will expect them to explain _why_ and with enough notice to allow investors to digest.
Now, of course, the CEO is still privy to inside information and can use that to inform their trades well in advance, but the idea is that by publishing well in advance of the sale, other investors can factor those sales into their own decisions. Insider trading is when you are able to make trades beneficial to you at the expense of the other investors based on inside information; its tough to do that when you announce to the world your plan to do so 3 months ahead of time.
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