Tilted Forum Project Discussion Community - View Single Post

ASU2003 · 06-23-2006, 10:01 PM

This thread kind of went off on a tanget...

I still don't understand the difference between the CEOs and the rich indivdual investor. Doesn't both use after tax dollars to buy shares, or is the CEOs shares different? If Jobs or Gates invested $10,000 of their own money starting the company, when it goes public and their is an IPO, are the shares of what ever percentage of the company the CEO owns given to them in pre-tax dollars then, with income taxes being paid when they are sold?

Could Jobs buy back $351 million shares of AAPL with after-tax dollars when it goes down after this sell-off? And then, if he holds them for at least a year, he would only have to pay 15% taxes on the gains like other investors? Is this a way for CEOs to get around taxes in the future. What happens if AAPL goes to $200/share, Steve Jobs would have to pay the government the same 45.8% on the increased amount. Now, he would only have to pay 15% on the change from the $68 level it is now to the $200 ($132) one. Or are there SEC rules against a CEO doing something like that?

06-23-2006, 10:01 PM	#21 (permalink)
ASU2003 immoral minority Location: Back in Ohio	This thread kind of went off on a tanget... I still don't understand the difference between the CEOs and the rich indivdual investor. Doesn't both use after tax dollars to buy shares, or is the CEOs shares different? If Jobs or Gates invested $10,000 of their own money starting the company, when it goes public and their is an IPO, are the shares of what ever percentage of the company the CEO owns given to them in pre-tax dollars then, with income taxes being paid when they are sold? Could Jobs buy back $351 million shares of AAPL with after-tax dollars when it goes down after this sell-off? And then, if he holds them for at least a year, he would only have to pay 15% taxes on the gains like other investors? Is this a way for CEOs to get around taxes in the future. What happens if AAPL goes to $200/share, Steve Jobs would have to pay the government the same 45.8% on the increased amount. Now, he would only have to pay 15% on the change from the $68 level it is now to the $200 ($132) one. Or are there SEC rules against a CEO doing something like that?