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CEO to Worker Pay Ratios for S&P 500 Companies (mander.xyz)

submitted 6 months ago* (last edited 6 months ago) by fossilesque@mander.xyz to c/dataisbeautiful@mander.xyz

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[–] independantiste@sh.itjust.works 10 points 6 months ago (2 children)

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 7 points 6 months ago* (last edited 6 months ago) (4 children)

Stock grants are taxed as regular income.

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

[–] Dkarma@lemmy.world 4 points 6 months ago (1 children)

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

[–] SpaceNoodle@lemmy.world 4 points 6 months ago* (last edited 6 months ago)

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

[–] qjkxbmwvz@startrek.website 2 points 6 months ago (1 children)

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 2 points 6 months 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 0 points 6 months ago (1 children)

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?

[–] SpaceNoodle@lemmy.world 2 points 6 months ago (1 children)

Who was talking about founders?

[–] howrar@lemmy.ca 0 points 6 months ago

Founders usually end up in C-suite positions. That sounds like what independantiste was thinking about.

[–] uis@lemm.ee -2 points 6 months ago (2 children)

Maybe in Europe

[–] SpaceNoodle@lemmy.world 3 points 6 months ago (1 children)

I'm talking about the US, sweetie.

[–] granolabar@kbin.melroy.org 2 points 6 months ago

Thank you for the service

[–] qjkxbmwvz@startrek.website 2 points 6 months ago* (last edited 6 months ago)

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.

[–] lud@lemm.ee 3 points 6 months 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.