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My (limited) understanding is it can be tax-advantageous for founders to give equity rather than cash. They can avoid capital gains taxes. So if a founder will
by mathattack 10y ago
My (limited) understanding is it can be tax-advantageous for founders to give equity rather than cash. They can avoid capital gains taxes. So if a founder will give, best to do it this way. One can say they should be generous to their employees, but at some point they will still have wealth to spread around. And if you're giving it to charity, you might as well do it this way.
Similarly, when Warren Buffett and Bill Gates give their fortunes away, they do it via stock.