Remember when Spez said it was “It’s time we grow up and behave like an adult company”? Apparently, that means paying himself $193 million and single-handedly tanking Reddit’s profitability right b…::undefined

  • batmaniam@lemmy.worldEnglish
    0·
    9 months ago

    For the record it absolutely is taxed as such. As soon as it vests the IRS considers it income, whether they sell it for the cash or not.

    Its a huge headache for startups sometimes. I had team members I wanted to compensate but just giving them the equity would have been an imediate big tax bill on a non-liquid, and speculative, asset. There’s ways to massage it (like vesting) but he will absolutely have that taxed.

    Oh, and I could be wrong but I think the share value is just taxed as ordinary income, not capital gains. Ie: if the award is denominated in $1 shares, which he sells for $1.10, the $0.10 gets capital gain rates (if he held it for a year) but the $1 is taxed just like a paycheck.

    • hedgehog@ttrpg.networkEnglish
      0·
      9 months ago

      Its a huge headache for startups sometimes. I had team members I wanted to compensate but just giving them the equity would have been an imediate big tax bill on a non-liquid, and speculative, asset. There’s ways to massage it (like vesting) but he will absolutely have that taxed.

      Is there an equivalent of the sell-to-cover withholding strategy for stocks that aren’t publicly tradable?