I’ve always wondered how this works- sure these folks are already personally wealthy, and they have large stock portfolios, but the mechanics of tapping into that for liquidity is interesting to me..
Say an exec makes Jassy’s base and has a large equity packages. Do banks feel comfortable writing loans against to-be-vested RSUs? I’d imagine they count RSU vesting as heavily discounted future cash flow.. but not sure.
Plus there is significant volatility in the actual value they bank at the end of the day- sure, speaking on normal terms having an equity package fluctuate at this scale isn’t significant to an individual’s finances, but might be to a bank underwriting, say, a recent Snap exec’s loans…
