Monday, April 21, 2008

Mark Cuban on CEO pay

My 2 Cents on CEO Pay - Blog Maverick

An interesting article, in one sense it explain a lot. And his idea for a solution makes sense, which of course means that it will probably never get implemented.

One additional point to make is that when it comes to taxes, these CEO's have a HUGE tax benefit to having their compensation in equity rather than cash. You will be taxed at a much higher rate for tax income versus capital gains, which is where these CEO's are really making their money.

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