Electro Optic Systems (ASX:EOS) said Chief Executive Andreas Schwer and Chief Financial Officer and Chief Operating Officer Clive Cuthell have undertaken a planned divestment of EOS shares, according to a Thursday Australian bourse filing.

The company said Schwer divested 1.5 million EOS shares on March 19, retaining 1.4 million shares valued at about AU$13.6 million based on the previous day's closing price of AU$9.65.

The company's minimum shareholding policy requires the chief executive to hold a minimum of four times his fixed annual remuneration in EOS shares, while the chief financial officer and chief operating officer are required to hold a minimum of three times their fixed annual remuneration.

Both Schwer and Cuthell retain shareholdings significantly in excess of the minimum shareholding policy requirement, the filing added.

Schwer has advised the board that he has no intention to make further divestments before the next trading window, which may open in mid-April, with any future dealings subject to board approval, the company added.

Schwer holds interests in a total of 585,929 unvested share rights and 986,842 unvested share options, which will not vest unless the relevant vesting conditions are met, the filing added.

The company's shares fell 7% in recent Thursday trade.