Amazon and online mortgage lender Better.com put together an arrangement allowing current or former employees sitting on stock to use their shares as collateral when buying a home, the Wall Street Journal reported.
Rather than selling their shares, which at Amazon typically comes in the form of restricted stock units, or RSUs, that vest over time, the person with stock can pledge against loans for a down payment.
There are two advantages to the employee (or former employee, given the thousands of people Amazon has laid off, at least some of whom might have RSUs). First, they don't have to sell shares and take the immediate tax hit. Second, if the shares will gain additional value or vesting, the shareholders can still gain the appreciation.
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