this post was submitted on 07 Dec 2024
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As a CEO id be stupid to get a salary. Dividends and stocks are much better tax-wise. Well maybe id get a smaller salary for the advantages in retirement and tax-free accounts and everything, but not much more than whats needed.
Stock grants are taxed as regular income.
Edit: downvotes from people who have no idea how stock, compensation, or taxes work, apparently.
Yeah people don't seem to understand taxes wrt stock at all. RSUs are definitely taxed!
Only thing I can think of is they're thinking of options? Afaik those can be advantageous, tax-wise, because you are taxed when you exercise, not when they're granted or when they vest (this is my understanding
I could be wrong).
Options are basically just a special price you get to pay for stock. There's another concept called "stock appreciation rights" in which shares are granted at a given strike price, and taxation only occurs on the price difference upon exercise (sale).