dont ceos have a great deal. you know those with stock options.?

Question

during the year they dont have social security tax or medicare tax unless they excercised their options. also when they excercise their options the government dont get their share first meaning the government has this nice thing called withholding before you spend but ceos dont have that. the ceo gets their pay first then pay the government a lump sum. what are the cons of stock options? besides they can go down in value.

steve jobs with his 1 dollar salary. doesnt he qualify for welfare?

why ceos get the big bucks is i dont know. they have the vision and the people make the product.

thanks for the info. ill probably get a hold of a irs manual. steve jobs gets millions of stock options, so about incentive options capped at 100k, isnt steves job getting millions of options over the 100k limit. im wondering.

Answer 1

Actually the kind of options that you are referring to, incentive stock options, are limited to $100,000 in value per year. Incentive stock options are not taxable for regular tax purposes when exercised and may give rise to capital gain when sold. Non-incentive options are taxable when exercised. The incentive options are taxable for purposes of the alternative minimum tax when exercised in the amount that the stock value exceeds the exercise price of the option. Other forms of non-cash incentive options have been strictly limited by legislation passed a couple of years ago. I guess Congress heard you.

Answer 2

CEO's typically make lots of money and have lots of benefits. For most of them, that can actually be justified due to their work, their skills, and their contribution to the organization.

I'd guess that Steve Job's assets exceed the amount for him to be eligible for welfare - I'd bet on it!