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I agree. It's one thing for the CEO of a large, profitable company to be flying private, but for a small, loss-making company, it feels off. The guy is already
by blackhawkC17 3y ago
I agree. It's one thing for the CEO of a large, profitable company to be flying private, but for a small, loss-making company, it feels off.
The guy is already ultra-rich...he might as well pay for those flights himself to show solidarity with shareholders. But it's up to Canoo shareholders to decide that, not me.
- bombcar 3y agoThe board chooses the CEO and his salary; if the board wants to give some of the salary in the form of jet reimbursements it's not really any concern beyond them and the shareholders.
- blackhawkC17 3y agoAlso agreed. If shareholders don't want that, they're free to vote him out, or keep him if they're okay with the private flights.
- yread 3y agoIt is a concern for the tax payers if company is paying it as expense and deducting it from taxes instead of paying it as (taxed) salary and him doing what he wants with his money. Don't you have rules what can be expensed in the US?
- bombcar 3y agoYes, and corporate travel can be expensed.
- ghaff 3y agoCertainly there are rules. I would speculate that deducting a private jet flight used for business probably doesn't run afoul of those rules however.
- bombcar 3y agoAnd personal use is accounted for (if paid by the company) and remanded as salary/perks. I even got affected by that at a restaurant I worked at; they fed us and we got a small "virtual" payment that would show up on our taxes for that meal.
- bradleyjg 3y agoMy recollection (I’m not checking) is that congress passed a law restricting the deductibility of private air flights, but that there’s widespread fraud in the form of “security consultants” advising boards that such flights are necessary for security purposes and so they are deducted anyway. It’s pretty unreal when you think about it that our culture has not small cadres of credentialed, professional liars for hire. Not just for CEOs either, think about the fake service pets for another example. Is this what the kids call late stage capitalism?
- 0xB31B1B 3y agoHe is effectively paying for these flights by buying Canoo stock. This whole structure is set up to allow him to maximize the tax efficiency of his compensation. The jet travel is realized as a business expense and offsets future potential profits at the company, he also avoids paying the ~60% (federal and state income tax, as well as payroll tax paid by employer) tax that you incur paying high wage w2 employees.
- happytiger 3y agoExactly. Strangely this is actually tax efficient for both parties.
- Jochim 3y agoNot a good thing.
- KRAKRISMOTT 3y agoSays the temporarily embarrassed millionaire
- Jochim 3y agoPermanently embarrassed if we're being realistic.
- mlrtime 3y agoThis slogan is boring. The politicians play us with "eat the rich" and "fair share". Meanwhile they increase taxes on 400k in HCOL areas making it painful to succeed. Why isn't the slogan "stop the loopholes" (The one in this thread)? Because politicians play us against each other instead of fixing laws they benefit from.
- TRDRVR 3y agoMy friend, that is not how public companies work. Every common shareholder is an equal, you don't get to launder jet travel the way he's doing - that's securities fraud.