IP: Re: Tech Workers' Stock Options Turn Into Tax Nightmares:

[David Farber <dave () farber net>]

> Date: Sat, 14 Apr 2001 18:21:17 EDT
> From: CommonGnd () aol com
> Subject: Re: Tech Workers' Stock Options Turn Into Tax Nightmares:
> To: <farber () cis upenn edu>
> X-Mailer: Unknown (No Version)
>
> Dear Dave and IPer's,
>
> I find it difficult to be overly sympathetic on the tax woes of these 
> stock option individuals.
>
> Let's go back to why these people are in these predicaments:
> (1) they elected to receive stock options (presumably in lieu of pay);
> (2) when they could have exercised their options, they chose instead to 
> hold them.
>
> Why did they do these two things?
>
> It's simple: they thought they could end up with MORE MONEY in the end.
>
> Why didn't Mr Chou collect the 1.8 million that he could have gleened from 
> exercising his options and selling his shares? I don't know. Had he done 
> this, he'd probably have a million or so in the bank even after paying taxes.
>
> Sure, I am sorry for Mr Chou's plight, but I think he and others in his 
> situation got greedy, took unwise risks, and are now seeing the dark 
> consequences of this strategy.
>
> Sure we can spin out long convoluted discussions about remuneration 
> schemes, payment plans, tax minimization, etc. But that's all beside the 
> point. People would never have gotten into this situation but for wanting 
> to make even more money. Remember, everyone could have exercised their 
> options, made a profit, paid taxes from the profit, and still banked money.
>
> It's Easter Weekend--the culmination of a story of a life lived without 
> greed. Let's focus on that, not whining about taxes.
>
> Respectfully,
> --Christopher A Bray
>
> Common Ground Communications



For archives see: http://www.interesting-people.org/