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

submitted 2 weeks ago* (last edited 2 weeks ago) by fossilesque@mander.xyz to c/dataisbeautiful@mander.xyz

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[–] independantiste@sh.itjust.works 10 points 2 weeks 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 2 weeks ago* (last edited 2 weeks 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 2 weeks ago (1 children)

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

[–] SpaceNoodle@lemmy.world 4 points 2 weeks ago* (last edited 2 weeks 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 2 weeks 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 2 weeks 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 2 weeks 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 2 weeks ago (1 children)

Who was talking about founders?

[–] howrar@lemmy.ca 0 points 2 weeks ago

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

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

Maybe in Europe

[–] SpaceNoodle@lemmy.world 3 points 2 weeks ago (1 children)

I'm talking about the US, sweetie.

[–] granolabar@kbin.melroy.org 1 points 2 weeks ago

Thank you for the service

[–] qjkxbmwvz@startrek.website 2 points 2 weeks ago* (last edited 2 weeks 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 2 weeks 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.