Doing this would be foolish since they are taxed as income when they vest but ca... | Hacker News

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fitblipper on March 2, 2018 | parent | context | favorite | on: When CEOs’ Equity Is About to Vest, They Cut Inves...

Doing this would be foolish since they are taxed as income when they vest but capital gains after. If their aim was to unfairly take advantage they should wait until right after vesting not right before.

Retric on March 2, 2018 [–]

The article address this: "Only once this period is over can they sell — and they typically do, to diversify their personal investments."

CEO's have a great deal of exposure to the upside of their company doing well, they want protection from the downside of it doing poorly.

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