Phil Knight’s Nike holdings decreased by 25 million shares, but he stands to get most of them back in a few years.
Phil Knights holdings in Nike decreased by 25 millions shares, or about 27% in the last fiscal year.
However, most of the shares went into three trust for children, and he stands to get most of them back in a few years.
The trusts will, “after a period of a few years,” return to Knight the value of his donation in the form of Nike stock, company spokeswoman Erin Dobson said in a statement. The trusts keep any increase in share value for the benefit of his children.
Since Knight gifted the shares to the trusts for a period of time, they are not technically considered to be owned by him, Dobson said.
This so-called Grantor Retained Annuity Trust is a common estate-planning tool used by wealthy individuals to gift the high growth potential of a stock to another generation without paying steep estate or gift tax bills. But the grantor — in this case, Knight — must outlive the period of the trust to reap the full tax savings.
Read more at OregonLive.com.
{biztweet}Phil Knight{/biztweet}
