@Karl925
Rule 701 - the relevant SEC rule governing equity awards of private companies - states that only employees or investors are eligible for stock options and equity ownership under current rules for private companies. As Airbnb hosts are (technically) classed as paid contractors, that would exclude them from eligibility.
However, as you mentioned, many companies entering the stock market do come up with plans to allow participation, in one form or another. For example, as Uber geared up for its public debut last year, the company allotted 'appreciation bonuses' of up to $40000 for drivers that had logged over a certain number of rides, as a reward for their loyalty and commitment to the service. The company also set aside 5.4 million shares for drivers to purchase at IPO price.
Uber put over $300 million toward the program that gave a significant portion of their longest-standing and most prolific drivers - 1.1 million of them - either a straight cash bonus or the chance to put their awards towards buying IPO shares.
Lyft had previously offered a similar program for its drivers too, and even invited many of them along to the Nasdaq opening event in LA.
Rather than following suit and implementing a similar immediate cash bonus/rewards structure to show the company's 'care and appreciation' for its most tenured and accomplished hosts - and indeed, ease some of the severe financial pain and hardships many in the host community have suffered throughout this horrendous year - Airbnb has instead concocted a 'creative' Host Endowment Fund scheme.
The (tax-deductible) Host Endowment Fund will be seeded with 9.2 million shares, with funds not due to be invested in hosts until the value of the endowment exceeds $1 billion.
The four key areas where the Airbnb-controlled fund will reportedly eventually spend some money include:
- Emergency funds for hosts in times of crisis.
- Investment in new products to support host success.
- An annual payout to a select group of hosts who most advance the Airbnb mission.
- Grant programs to support education costs for hosts and their families.
With the IPO shares currently valued at $34.88, that would mean that there will be just over $320 million in the pot to start with, so the endowment will need to more than treble in value to reach the $1 billion threshold before a cent of it is ever disbursed.
Don't hold your breath.
Penelope
