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> The Company has from time to time issued nonrecourse loans to certain employees for the exercise of stock options or for personal use. As of December 31, 2017
by sixhobbits 8y ago
> The Company has from time to time issued nonrecourse loans to certain employees for the exercise of stock options or for personal use. As of December 31, 2017 and 2018, the total outstanding employee loan balances were $21 million and $16 million, respectively. A total of 16 million and 10 million shares were pledged as collateral to secure the loans as of December 31, 2017 and 2018, respectively.
Is loaning 20 million dollars to employees for personal use as dodgy as it sounds?
- phonon 8y agoNo, it's usually negotiated as part of an options package. "We will lend you the money to exercise your options". Then they can pay it back once they sell the shares they received.