3 ms·

> works for no salary Working for no salary is almost never charitable and is almost always just part of a larger tax avoidance scheme.

tombert 5mo ago
Yeah I've never thought that that was the win that people seem to think it is. When you're that high up in the company, you have so much stock that you can pretty easily get loans against for however much you need, and write off the interest in the process.
- rtkwe 5mo ago
  They have to trot it out because otherwise there's not much else to pimp about Cohen as CEO and this attempted deal seems much more oriented to juice the total market value of GME to more easily meet the criteria for his recent pay package rather than a great idea for either company on it's own.
- valleyer 5mo ago
  What U.S. tax code provision allows an individual to write off (non-primary-mortgage) loan interest?
  - tombert 5mo ago
    Can't you write off capital losses? I've been able to deduct margin interest from my capital gains.
    - valleyer 5mo ago
      Margin interest is tax-deductible, but only when you're using the loan to buy more securities. So, in context, a CEO who "works for no salary" and just takes out loans secured by their stock holdings to fund their lifestyle does not get to write off that interest. Not to say the "no salary" thing isn't silly anyway, of course.
wordpad 5mo ago
Doesn't matter as long as incentives are aligned. As a major stockholder and active advocate, he is already vested in success.
- tombert 5mo ago
  I'm not sure that the incentives actually are aligned. It seems like the incentives are to think short term and do sketchy shit to pump the stock.
  - wordpad 5mo ago
    >It seems like the incentives are to think short term and do sketchy shit to pump the stock. Its a meme stock, that's what stockholders actually want.
    - tombert 5mo ago
      I'm arguing it's not "success". I don't believe that a meme stock is a truly long-term business.
      - wordpad 5mo ago
        >I'm arguing it's not "success". I don't believe that a meme stock is a truly long-term business. Duh. Crypto is the peak meme investment. Literally worthless, yet the market size is in trillions now, with even pension funds buying into it. It doesn't follow any fundamentals, but as the meme markets defacto exist, there needs to be some models of valuing these investments other than fundamentals.
        tombert 5mo ago
        Sure, and I think that these things will, eventually, crash. I suspect GameStop will before Bitcoin, but I think both will eventually. The market can stay irrational for a very long time.

tombert 5mo ago

Yeah I've never thought that that was the win that people seem to think it is. When you're that high up in the company, you have so much stock that you can pretty easily get loans against for however much you need, and write off the interest in the process.

rtkwe 5mo ago
They have to trot it out because otherwise there's not much else to pimp about Cohen as CEO and this attempted deal seems much more oriented to juice the total market value of GME to more easily meet the criteria for his recent pay package rather than a great idea for either company on it's own.
valleyer 5mo ago
What U.S. tax code provision allows an individual to write off (non-primary-mortgage) loan interest?
- tombert 5mo ago
  Can't you write off capital losses? I've been able to deduct margin interest from my capital gains.
  - valleyer 5mo ago
    Margin interest is tax-deductible, but only when you're using the loan to buy more securities. So, in context, a CEO who "works for no salary" and just takes out loans secured by their stock holdings to fund their lifestyle does not get to write off that interest. Not to say the "no salary" thing isn't silly anyway, of course.

wordpad 5mo ago

Doesn't matter as long as incentives are aligned. As a major stockholder and active advocate, he is already vested in success.

tombert 5mo ago
I'm not sure that the incentives actually are aligned. It seems like the incentives are to think short term and do sketchy shit to pump the stock.
- wordpad 5mo ago
  >It seems like the incentives are to think short term and do sketchy shit to pump the stock. Its a meme stock, that's what stockholders actually want.
  - tombert 5mo ago
    I'm arguing it's not "success". I don't believe that a meme stock is a truly long-term business.
    - wordpad 5mo ago
      >I'm arguing it's not "success". I don't believe that a meme stock is a truly long-term business. Duh. Crypto is the peak meme investment. Literally worthless, yet the market size is in trillions now, with even pension funds buying into it. It doesn't follow any fundamentals, but as the meme markets defacto exist, there needs to be some models of valuing these investments other than fundamentals.
      - tombert 5mo ago
        Sure, and I think that these things will, eventually, crash. I suspect GameStop will before Bitcoin, but I think both will eventually. The market can stay irrational for a very long time.