Airbnb S-1 - Hackdot

Re:Airbnb S-1 by beambot on Monday November 16, 2020 @06:24PM (#25118400)

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.

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Re:Airbnb S-1 by Marciplan on Monday November 16, 2020 @06:36PM (#25118504)

Hi! Random q, but where could I read more on this specific topic? :)

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Re:Airbnb S-1 by dmarlow on Monday November 16, 2020 @07:35PM (#25119005)

Take a look at PAL, pledged asset lines or margin loans.

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Re:Airbnb S-1 by Marciplan on Wednesday November 18, 2020 @07:27PM (#25144672)

Thx! :)

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Re:Airbnb S-1 by toomuchtodo on Monday November 16, 2020 @07:32PM (#25118985)

For 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.

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Re:Airbnb S-1 by Marciplan on Wednesday November 18, 2020 @07:28PM (#25144676)

Thank you :)

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Re:Airbnb S-1 by pathseeker on Monday November 16, 2020 @07:16PM (#25118864)

I'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?

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Re:Airbnb S-1 by toomuchtodo on Monday November 16, 2020 @07:29PM (#25118962)

It's to capture future possible growth and defer taxes into the future.

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Re:Airbnb S-1 by benmller313 on Monday November 16, 2020 @07:19PM (#25118893)

I'd guess just savings on paying capital gains tax vs income tax?

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