3 ms·

He probably means initial grant is taxed as wage income, and then if company succeeded, stock goes up, and he pays lower long term capital gain tax.

• njtransit 2y ago
  That would be the same if comp was paid in cash and then individually invested.
  • riku_iki 2y ago
    which somehow rarely/never happens. I suspect they may have some contractual obligations to hold on stocks, otherwise market may start panicking seeing CEO aggressively selling stocks.