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by throwaway09223 1687 days ago
Yes, and to build on your comment regarding the employer's lack of knowledge and control over taxes: Equity comp also means the employee has control over when they get compensated.

Maybe the employee will sell equity as it vests, maybe they'll keep it and sell it all ten years later. These choices will all drastically change the tax situation.

A good employer will work with you as a team to help you realize your financial strategy.

2 comments

> Equity comp also means the employee has control over when they get compensated.

I wish that were a universal truth, but it decidedly does not apply to RSUs which most equity compensation comes in the form of.

> which most equity compensation comes in the form of.

* location depending.

This is certainly the case today in some places, but has not been the norm in most places (unfortunately).

The control is somewhat reduced, but not entirely. While the employee is forced to pay tax at vest, they can still retain the RSU and sell later.
That's the exact same thing as getting a salary and buying stock with it.
Yes though equity is a whole different discussion :D I wouldn't be comfortable making recommendations there since the world of equity is big and hairy and it's hard to give generic advice that isn't harmful in some situations.