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10 points

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.

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7 points
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Stock grants are taxed as regular income.

Edit: downvotes from people who have no idea how stock, compensation, or taxes work, apparently.

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-2 points

Maybe in Europe

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3 points

I’m talking about the US, sweetie.

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2 points
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Search the Internet for RSU tax liability in the US. It’s taxed as supplemental income and is subject to withholding.

Are you thinking of options? That’s different — “stock grant” afaik almost always refers to an RSU grant/vest.

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2 points

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).

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2 points

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).

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4 points

Rsus have to vest and then they’re taxed when they drop to your account.

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4 points
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That is correct. It’s the same as paying taxes on each paycheck, not when your salary is promised.

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0 points

I thought founders usually get all their shares upon founding the company when it’s worth next to nothing. Is that not how it works?

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2 points

Who was talking about founders?

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3 points

I mean, you still have to have some money to survive day to day life.

I wouldn’t want my entire income to be based on the company’s performance and the whims of the stock market.

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