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It's time to bring in legislation that limits what percentage of total compensation can be comprised of equities. It will cap the TC package and somewhat disinc
by glitchc 1y ago
It's time to bring in legislation that limits what percentage of total compensation can be comprised of equities. It will cap the TC package and somewhat disincentivize short-term stock price thinking that currently dominates the boards of large corporations.
- JumpCrisscross 1y ago> It's time to bring in legislation that limits what percentage of total compensation can be comprised of equities. It will cap the TC package Why? You’d just pay more cash. Or incentive bonds or whatnot. Just add a marginal tax tier at $10mm or whatever.
- glitchc 1y agoMore cash automatically means more taxes. It gets reported as salary. Payment in equities is essentially a tax dodge as the only time they're taxed is when they get sold (capital gains).
- JumpCrisscross 1y ago> More cash automatically means more taxes. It gets reported as salary. Pay more to cover the taxes. Or, as I suggested, pay in assets that aren't equity. Bonds, for instance. Or, like, buy the executive's side business once a year. Regulating compensation is a silly way to get around raising taxes on the rich.
- baq 1y agocapping CEO TC in any way whatsoever is impossible, they'll always find a loophole, not to mention it's a feature, not a bug, for the current administration (and probably for any administration). better incentivize companies to give CEOs more money if their employees get more money and also disincentivize short term stock price manipulation.