4 ms·
Agreed but paying an exec $1 in compensation salary and $100m in stock should also be illegal.
by ykevinator3 5y ago
Agreed but paying an exec $1 in compensation salary and $100m in stock should also be illegal.
- dagw 5y agoIt shouldn't be illegal, it just be taxed at a reasonable level making it more equivalent to getting the same salary in cash.
- sologoub 5y agoIt already is taxed as ordinary income - RSUs are taxed as cash when vested. Incentive stock options (you have to buy these out at strike price) are taxed as income for value at exercise less strike price. The advantage of RSU over regular cash comp is that they can appreciate while not yet vested - it’s like putting your future salary into stock market, it can go up or down. Then when vested, it’s taxed as cash salary (no long term capital gains advantage here).
- gruez 5y agoAFAIK that's already the case. People are conflating the value of the stock at the moment you're paid (which is taxed as regular income) and the gains that come afterwards (which is taxed as capital gains).
- jcheng 5y agoIf you pay an exec $100MM in stock, they’re taxed on it the same as $100MM in cash, no? They’re just not taxed if their stock appreciates by $100MM and they never sell it. (And if they do sell it’s taxed as capital gains)