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It's much more tax efficient for Chesky to get loans against his equity in lieu of cash compensation -- especially if he believes that the equity will grow dram
by beambot 6y ago
It's much more tax efficient for Chesky to get loans against his equity in lieu of cash compensation -- especially if he believes that the equity will grow dramatically in value due to an IPO.
- Marciplan 6y agoHi! Random q, but where could I read more on this specific topic? :)
- toomuchtodo 6y agoFor public securities, margin or a pledged asset line. If it's private equity (structured lending), you'll need to speak with a banker who can structure a deal specifically for you based on an illiquid PE holding.
- Marciplan 6y agoThank you :)
- dmarlow 6y agoTake a look at PAL, pledged asset lines or margin loans.
- Marciplan 6y agoThx! :)
- pathseeker 6y agoI've heard this before, but what advantage does the loan have? Doesn't the CEO still pay just as much tax when he/she sells the stock to pay down the loan? Is it just to allow the stock a chance to appreciate?
- benmller313 6y agoI'd guess just savings on paying capital gains tax vs income tax?
- toomuchtodo 6y agoIt's to capture future possible growth and defer taxes into the future.