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by andrewfong
3712 days ago
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> But unlike many of those tech companies, Mr. Ulukaya is giving his employees a piece of the company after its value is firmly established. I wonder how they set this up tax-wise. Stock grants are income, even before you sell. In tech companies, you typically get the stock when it's super cheap, so the tax hit is minimal. But here, since the value's pretty firmly established, the employee is potentially on the hook for quite a bit. And depending on the details of the grant, it may not be possible for employees to sell off their stock to pay taxes. There are several ways to solve this. The employees could be getting options (set up so taxes are deferred until they exercise). Or the company could just eat the tax themselves. But kind of curious which route they took. |
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Just to be clear, RSUs are taxable as income at the value & tax year they vest, not the grant date.