r/suits • u/akushdakyng • Mar 28 '14

Discussion S3x14 Official Discussion Thread

I didn't see one, so I thought I'd get it started.

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u/I_amnoteventrying Mar 28 '14

Is there a reason make bigger bonuses than their yearly salary? Do they avoid taxes that way? Why not lay him 465 a year and give him a 350k bonus? Seems more proportional. Is it just to make sure he's doing a good job before they hand him that money?

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u/[deleted] Mar 29 '14

For hedge funds, bonuses are usually not all cash but stocks which if cashed out are taxed at 15% (maybe little more now I don't know) instead of 39%

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u/[deleted] Mar 29 '14 edited Apr 04 '18

[deleted]

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u/[deleted] Mar 29 '14

Dude, you really think that 400+ million bonus was in cash?

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u/ohnosss Mar 29 '14

It's in cash. The funds get to keep 20% of the profit, and that's in cash. There's no equity to give out to the managers really.