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



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