3 ms·
The big ones are all in stock and that has some issues: There will be tax event when they cash out. You'd be surprised how many people take short term capita
by luckydude 11y ago
The big ones are all in stock and that has some issues:
There will be tax event when they cash out. You'd be
surprised how many people take short term capital gains
instead of long term. The reason for that is usually
uncertainty about the stock. If it costs you $100K to
exercise your options you are going to be reluctant to
do that until you can sell. And then you have to wait a
year for the long term capital gains tax rate and what if
the stock crashes?
tl;dr: $50M in stock is probably around $25M in cash.