zlacker

What is the structure of those compensations, and the mechanism for the clawbacks? Equity is taxed when it becomes the full, unrestricted property of the employee, so depending on the structure these threatened clawbacks could have either (1) been very illegal [essentially theft], or (2) could have had drastic and very bad tax consequences for all employees, current and former.

I'm not surprised that they're rapidly backpedaling.

>>adastr+(OP)
Not sure how they deal with the tax. Ping John Stumpf (former Wells CEO) and ask, he probably has time on his hands and scar tissue and can explain it.

>>adastr+(OP)
> taxed when it becomes the full, unrestricted property of the employee

I guess these agreements mean that the property isn't full unrestricted property of the employee... and therefore income tax isn't payable when they vest.

The tax isn't avoided - it would just be paid when you sell the shares instead - which for most people would be a worse deal because you'll probably sell them at a higher price than the vest price.

>>london+U2
> which for most people would be a worse deal

It's a worse deal in retrospect for a successfull company. But there and then it's not very attractive to pay an up-front tax on something that you can sell at an unknown price in the relatively far future.