DiabloWags said:
Anyone with basic financial aptitude nows full well that the stock that is vested by employees and CEO's (in this case Union Pacific) through stock option grants and restrictedr over ONE YEAR is taxed at the LONG TERM CAPITAL GAINS RATE which is currently 20%.
This is opposed to SHORT TERM CAPITAL GAINS (held less than one year) which are taxed at the rate of ordinary income.
A Medicare 3.8% surtax kicks in for any capital gain for an individual over $200,000.
https://smartasset.com/taxes/2021-capital-gains-tax-rates
This is nothing new.
Its basic common knowledge.
It's not even as favorable as you suggest. When I was an executive officer, most of my compensation was in PSUs, RSUs and options. None of us ever received ISOs that had too many restrictions and was a pain for companies to maintain. I don't know any public company that currently provides ISOs. As such, when an executive exercises options, the gain is taxed as ordinary income. The main tax benefit of options is that it is a deferred form of compensation in that it is not taxed at vesting but upon exercise. RSUs and PSUs are also taxed as ordinary income at vesting since they are delivered as stock upon vesting. The main benefit is that you can pay in shares so that the company withholds shares for taxes instead of you writing a check.
Based on what you wrote, assume the other poster's linked TikTok indicated otherwise. If so, so tired of these Tiktok / Twitter idiots who have never held a real job making up idiotic claims. People who only learn from TikTok and Tweets are a big reason for the dumbing down of America.