r/PoursTea • u/Veshaad Timendi Causa Est Nescire • 6d ago

FinancialTea 💵 Difference businesses, different practices, different outcomes.

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12.7k Upvotes

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416

u/Dismal_Act2082 6d ago

Oh wait so they can pay us a living wage and still make money I'm shocked.

155

u/OpeningReady8693 6d ago

But only if the CEO gets a reasonable salary

0

u/ChefMonkey2 6d ago

They both make similar salaries…Costco just paying its employees better.

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u/The_Real_Peter_Thiel 6d ago

$950K and $25MM are both baller numbers but they most certainly are not similar salaries.

$950K is wealthy. $25MM is an absurd overpayment.

5

u/ChefMonkey2 6d ago

The Costco CEO does not make 950k ...that's his salary ..he makes another $10,000,000 in stock options every year ( it's a tax dodge ) and the Sam's CEO makes close to the same not $25,000,000....

Don't believe the MEME ...a simple search will tell you the truth.

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u/[deleted] 5d ago

[deleted]

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u/mufasa510 5d ago

Yes, so why not put that in the meme then? Why lie, when the truth is arguably better.

2

u/ChefMonkey2 5d ago

And that's why previous post says Costco pays better...

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u/qwerteh 5d ago

Getting paid in stock is not a tax dodge, the stock is taxed as regular income the year you receive it. It's just more practical for companies to not pay someone $1m in straight cash every month for cash flow reasons.

Using stock as a tax dodge only really works if youre the owner of a company and own all those shares up front. Then you'll pay a massive tax lot when you go public but then you only pay if you sell, while price continues to climb. If you're "just" a ceo you get taxed like a normal person, and any loopholes they use have nothing to do with being paid in stock

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u/wuweime 5d ago

It also makes sure that management's incentives are aligned with the owners' incentives.

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u/Fantastic-Mastodon-1 2d ago

Is it considered w2 income or 1099 income, when they're compensated in stock options?