PPRuNe Forums - View Single Post - None of our lot would do this..............
Old 8th May 2015, 15:11
  #35 (permalink)  
cpnkirk59
 
Join Date: Aug 2006
Location: Klamath Falls, OR
Age: 65
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Executive compensation

Two things:

Consensus science doesn't mean squat! 100 years ago, roughly 100% of the physicists thought the sun was comprised in the same ratio of the elements found on the earth. One woman said "NO" Cecilia Payne-Gaposchkin - Wikipedia, the free encyclopedia. No one believed her hypothesis, for years!

Second, in order to understand why Parker would prefer to take his compensation as stock; one has to understand the US tax code. When Warren Buffet says the US taxes have to be fixed, he is correct. Long term capital gains (i.e. long term investments in stocks!), are only taxed at 15%. When Buffet sells his interests in a company he has built up (the actual shares) for $798 mil, he only pays 15% in taxes, as compared to the baseball player who makes $20 mil, who pays something like 50% in taxes.

Parker will still receive annual compensation, expenses, expensive company homes (supposedly, AMR had a small mansion in downtown London, used by the executives) and any corporate charters. Later on, if the stock stays high, he can sell off a little at a time and have a comfortable lifestyle.

RP
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