First the executives get taxed personally
Posted on: November 9, 2017 at 15:33:30 CT
Mormad MU
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on the "spread" between option price and stock price. It's ordinary income to them, so likely taxed at the highest marginal rate. Even if they're incentive options, they get caught in AMT - the spread is a preference item - so unless you get rid of AMT, it's likely not going to benefit them, other than any specific change in the rate structure - the amount taxed marginally at various rates.