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The article points out that Amazon offers pay cash for two years the stock, whereas Google pays a mix of stock and cash. The tax difference is that that with A
by rahimiali 5y ago
The article points out that Amazon offers pay cash for two years the stock, whereas Google pays a mix of stock and cash. The tax difference is that that with Amazon, your stock grows unvested for two years, and when you vest, it’s growth gets taxed as ordinary income. With google stock, you can hold the vested stock for those same two years and get taxed on that growth as long term capital gains.
- pavas 5y agoIsn't it actually as simple as "how much do you get paid per year in total"? The reason being that you can convert cash to stocks (and pay capital gains taxes on its growth) at any time. So $100k salary + $50k cash bonus == $100k salary + $25k cash bonus + $25k vested stock. You can discount any future inflows of cash or stock to present value and compare offers quite easily. Some offers will be more but that has nothing to do with whether compensation is made up of stocks or cash.
- rahimiali 5y agoyeah good point. equivalence by reduction to rsu.