What are Founders Shares?

[Infiniti007]

My friend is going through a divorce mediation and her husband owns founder shares in a public company. He would prefer to keep these and my friend's CPA said that these older shares have a higher tax basis than the newer (non founder) shares they have. Is there a particular reason he would want to keep these? He is a financially savvy individual, so trying to understand any benefit of keeping these despite the higher taxes on them?

[Petunia 100]

My friend is going through a divorce mediation and her husband owns founder shares in a public company. He would prefer to keep these and my friend's CPA said that these older shares have a higher tax basis than the newer (non founder) shares they have. Is there a particular reason he would want to keep these? He is a financially savvy individual, so trying to understand any benefit of keeping these despite the higher taxes on them?

A higher tax basis means less tax due when sold.

[Infiniti007]

Sorry meant higher tax rate

[Petunia 100]

Founders shares are common stock issued to the founders of the company, sometimes called Class F stock. The founders stock may have special privileges. Your friend should read the corporate charter to see.