• Pasta Dental@sh.itjust.works
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    5 days ago

    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.

    • SpaceNoodle@lemmy.world
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      4 days ago

      Stock grants are taxed as regular income.

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

        • SpaceNoodle@lemmy.world
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          4 days ago

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

      • qjkxbmwvz@startrek.website
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        4 days ago

        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).

        • SpaceNoodle@lemmy.world
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          4 days ago

          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).

      • howrar@lemmy.ca
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        4 days ago

        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?

    • lud@lemm.ee
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      4 days ago

      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.