3 ms·

Why can’t they offer actual stock instead at that point?

• rfrey 6y ago
  Then employees would need to immediately pay tax on the stock based on the last valuation.
  • messe 6y ago
    I'm not sure about stock options, but RSUs are reasonably common in Ireland. Tax isn't paid on them until the vest date.
    • smachiz 6y ago
      RSUs work because they're typically for already public companies. At vest, in the US, a percentage of shares are immediately sold to cover taxes. With illiquid stock - as in a startup - where there's no public market for it, and no one to sell it to, you can't really do that, and you're creating a tax problem for your employees. The company can pay those taxes on your behalf - but that's expensive when a startup is explicitly paying in stock because they need the cash to grow.
  • holoduke 6y ago
    most European countries use Sars (stock appriciation right) tax is collected at the very end. against a 50% tax cut though (in most EU countries)