Tax Breaks for Stock Pay Curbed, Handing Tech `Huge' Liabilities
- Court ruling blocks full write-off for stock compensation cost
- Facebook says its tax rate could be as high as 30% on change
Photographer: Scott Eells/Bloomberg
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Silicon Valley’s favorite compensation strategy -- paying top employees in stock rather than cash -- just got more expensive.
A recent U.S. federal court ruling means companies such as Facebook Inc. and Alphabet Inc.’s Google won’t be able to deduct the full cost of the stock payments they make to employees when calculating their corporate tax bills, which they’ve done for years.