So if I am to believe that I understand what was posted by MichaelB Hamlet and Sheehs1 then the vast majority of compensation is taxed at the same rates I pay and not at cap gains. Correct?
Correct RetireBy90. At some point, ordinary income tax rates are paid either when the grant invests or when the options are exercised. I'm not saying the CEO might not get a lower set point or price for execution...but they will eventually pay ordinary income tax rates.
However, the hedge fund managers and the private equity partners...might be a different story. I'm also not well versed in how they are paid. We could get into that one too for an increased understanding...if there is anyone on the board who falls into these categories who is willing to share the information