I hate CEOs

[her209]

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

When an employee exercises their stock options and holds the stock for 1 year or more, how are they taxed?

 

[Stiganator]

It would be difficult to do an experiment, lots of variables. But I have a feeling that there are very few CEOs whom could perform any better than a hole in the ground. I'm not griping at their salaries, just that they still get more than a normal person will make in a lifetime even if they fucked over an entire company and all the employees. It is obvious that this country and its shareholder based economy is not longer under our control at all.

 

[Ns1]

Originally posted by: Stiganator
It would be difficult to do an experiment, lots of variables. But I have a feeling that there are very few CEOs whom could perform any better than a hole in the ground. I'm not griping at their salaries, just that they still get more than a normal person will make in a lifetime even if they fucked over an entire company and all the employees. It is obvious that this country and its shareholder based economy is not longer under our control at all.

uh no

Originally posted by: her209

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

When an employee exercises their stock options and holds the stock for 1 year or more, how are they taxed?

Taxation for stock options are pretty fucked up IIRC, I wouldn't know without doing a shitload of research.

 

[Playmaker]

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

And a lack of understanding in the way market forces drive executive recruiting at both public and private companies in the US.

 

[spidey07]

Originally posted by: her209

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

When an employee exercises their stock options and holds the stock for 1 year or more, how are they taxed?

I see where you're going (capital gains), but it doesn't work that way. Options and awards are treated differently and if you would read the annual reports the compensation and structure is clearly defined in a publicaly held company.

I don't think you understand what a stock option is, it's an option to buy at a particular price. From there selling for a gain/loss is subject to capital taxation. Also remember that normally director level and above buying and selling of stock has blackout periods based on quarterly and year-end fiscal year time periods. Further providing officer incentive for performance.

 

[Engineer]

Originally posted by: spidey07

Originally posted by: her209

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

When an employee exercises their stock options and holds the stock for 1 year or more, how are they taxed?

I see where you're going (capital gains), but it doesn't work that way. Options and awards are treated differently and if you would read the annual reports the compensation and structure is clearly defined in a publicaly held company.

I don't think you understand what a stock option is, it's an option to buy at a particular price. From there selling for a gain/loss is subject to capital taxation. Also remember that normally director level and above buying and selling of stock has blackout periods based on quarterly and year-end fiscal year time periods. Further providing officer incentive for performance.

So if they exercise the option and get a share of stock, hold it for one year and sell for a gain, the gain isn't taxed at long term capital gains rates (capped at 15% max)?

 

[spidey07]

I'm not a tax expert, but that is long term capital gains.

Also keep in mind any officer selling his stock is reported by SEC law and generally frowned upon by the market. My point is awards are more prevalent than options at this level and taxation is different between them but it depends on the company. This is all part of the total compensation an officer gets and directors and above. Don't forget about the blackout dates where you can't do squat.

 

[IHateMyJob2004]

Obama will fix this by taxing the r@p out of the super wealthy

 

[Playmaker]

Originally posted by: IHateMyJob2004
Obama will fix this by taxing the r@p out of the super wealthy

Doesn't the top quartile already pay over 80% of income tax in the US? And the bottom half pay less than 5%?

I'd say it's already pretty fucked up.

 

[paulxcook]

I remember when I started my last job I looked up the company on Google news and the two stories, in order, were 1.) about the thousands of employees being laid off, and 2.) the $3 million bonus the CEO just received. I won't miss working for them. However, I don't blame the CEOs for making that money. If someone offered it to you, would you say no? Blame the board that gives it to them.

 

[her209]

Originally posted by: spidey07

Originally posted by: her209

Originally posted by: Ns1

Originally posted by: jman19
Ok, great. What is the solution? Or is this more class and wage warfare griping?

class and wage warfare griping

When an employee exercises their stock options and holds the stock for 1 year or more, how are they taxed?

I see where you're going (capital gains), but it doesn't work that way. Options and awards are treated differently and if you would read the annual reports the compensation and structure is clearly defined in a publicaly held company.

I don't think you understand what a stock option is, it's an option to buy at a particular price. From there selling for a gain/loss is subject to capital taxation. Also remember that normally director level and above buying and selling of stock has blackout periods based on quarterly and year-end fiscal year time periods. Further providing officer incentive for performance.

I know what an option is. I was asking about the taxation.

 

[her209]

Originally posted by: Playmaker

Originally posted by: IHateMyJob2004
Obama will fix this by taxing the r@p out of the super wealthy

Doesn't the top quartile already pay over 80% of income tax in the US? And the bottom half pay less than 5%?

I'd say it's already pretty fucked up.

What is the % of income is earned by the top quartile in the same time period?

 

[Engineer]

Originally posted by: her209

Originally posted by: Playmaker

Originally posted by: IHateMyJob2004
Obama will fix this by taxing the r@p out of the super wealthy

Doesn't the top quartile already pay over 80% of income tax in the US? And the bottom half pay less than 5%?

I'd say it's already pretty fucked up.

What is the % of income is earned by the top quartile in the same time period?

The bottom 50% earns 12% of income (I remember from P&N). Top 1% earns 20% income and pays 40% taxes. Taxes become regressive (compared to middle and upper middle class) once the average crosses 10 million in income, because of capital gains treatments.

 

[krunchykrome]

Originally posted by: Stiganator
How do companies justify firing hundred to thousands of people making moderate salaries and then give the CEO a million dollar bonus on top off what is already 6 or 7 figures plus stock options?

Then look at the quitting bonuses they get? WTF, they get 30 million to quit??? Why do companies give away stockholders money?

because the CEO can't be replaced nearly as easily as staff can be replaced