Palantir SBC is costly and is here to stay, therefore must be included in the model. 99% of the DCFs on the web fail to properly represent the reality on Palantir and deliver outsized “fair prices”.
Does the issuance of stock options and other instruments (RSU?) have an impact on taxes? When stock options are exercised, does it trigger a tax event for the company issuing them? Thank you
On the one side the company incurs some Employer Payroll Taxes related to SBC a when given, on the other side SBC reduces the net income, so lower overall taxes.
Once the options are vested, the complete tax burden should be on the employee from what I read here:
Does the issuance of stock options and other instruments (RSU?) have an impact on taxes? When stock options are exercised, does it trigger a tax event for the company issuing them? Thank you
Premise: I am not a tax expert.
On the one side the company incurs some Employer Payroll Taxes related to SBC a when given, on the other side SBC reduces the net income, so lower overall taxes.
Once the options are vested, the complete tax burden should be on the employee from what I read here:
https://www.thetaxadviser.com/issues/2019/may/stock-based-compensation-basics.html