The article likely is wrong on the math, but does have logic to it. I'd imagine the amount he owes will likely be taxed as "capital gains" rather than "income".

The article likely is wrong on the math, but does have logic to it. I'd imagine the amount he owes will likely be taxed as "capital gains" rather than "income". So, it would be correct in saying he avoids paying income tax even though he still pays capital gains taxes. I think the issue people like the author have (albeit poorly made by the article imo), is that this is arguably a loophole the rich use to avoid paying their fair share of taxes - not necessarily that the rich pay no taxes at all. Capital gains is taxed at lower rates than income, so the rich (e.g. CEOs) opt to get paid in equity to avoid having to pay higher tax rates that they would have if they were instead paid an income.