3 ms·
Not a problem when you can ask your friends to rewrite the rules. My favorite story: FedEx doesn't allow BoD/executives to pledge stock for margin loans. But
by ksherlock 3y ago
Not a problem when you can ask your friends to rewrite the rules.
My favorite story:
FedEx doesn't allow BoD/executives to pledge stock for margin loans. But they will make exceptions on a case-by-case basis. They only made on exception, (then) CEO Fred Smith.
How it started:
"In accordance with our policy, Mr. Smith has established his financial capacity to repay the loan without resorting to the pledged shares. In the unlikely event such a sale were necessary, based on the 30-day average trading volume for FedEx shares as of August 4, 2014, it would take two days for the pledged shares to be sold in the open market. Furthermore, Mr. Smith’s unpledged share ownership is very substantial and would likely be able to prevent any margin call."
How it went:
"As a result of the stock price decline during fiscal 2020, Mr. Smith was granted approval to pledge additional shares in March 2020."