| Topic Name: |
Salary Negotiations |
| Message Name: |
As explained in our meeting... |
| Date Posted: |
03/08/2006 |
| In Reply To: |
Stock is not taxed until it is sold. it is not like regular income. The tax rate is determined by the selling price, not the value. So the tax hit is not realized at the 4-year vesting unless the individual immediately sells the stock for a profit. |
| Message: |
with this arrangement, it consists of ownership shifting from one party to another, which could be compared to giving a cash bonus. This is different from purchasing the stock yourself and hanging on to it.
It is explicitly stated as such in this document we got... that the stocks can be sold to pay the taxes.
For a comparison, it would be like winning a car in a contest, since you would be expected to pay taxes based on the value of the prize.
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