[TheRealDunkirk]

A lot of the most egregious, society-warping behavior by monstrous-sized companies is due to paying execs with stock. It was a salary tax avoidance maneuver that started in the 80's, and has led to 1) absolute fixation on short-term stock price, and 2) (also to that end) stock buybacks. Many of our largest corporations have used recent stimulus moneys to fund buybacks like it was sex or something. All it has been is a transfer of tax dollars to the oligarchy, and has "stimulated" nothing. We need some laws that do away with the loophole somehow, either by not allowing companies to pay people in stock, or by taxing the stock on its nominal value when given, making it much less attractive as a shell game.

[marcus_holmes]

This has also completely messed with startup stock options. Because large companies used options to award execs with tax-free incentives, and the tax authorities didn't like that, we now have to pay tax on the options when we get them rather than on the capital gains we actually make. And it doesn't solve the problem - execs get paid some other way and options are still fubar'd

[MarkPNeyer]

Or we need money they can’t be created via debt.

Issuing debt to buy back shares is a strategy that works great when interest rates are very very low.

But when the money supply is scarce, only so much leverage can exist, so issuing debt to buy shares would be far far riskier.

[coredog64]

RSUs are taxed as income according to their value on the day they vest. Companies can offer employees below-market grants, but the difference is recognized as a cost and (eventually) has to be approved by shareholders.

Stock options with a strike price below market also have tax implications for both the company and the employee.

Equity based compensation essentially comes out of the hides of shareholders: As long as they are happy (and people aren’t playing Thiel-type games), it’s not as terrible as you make it out to be. There’s a limit to what buybacks can do to juice prices and equity generally puts people into a long term mindset.