A number of prominent Wall Street executives are joining the Trump administration, a career move that could see them not only forgo millions in compensation, but also incur a big tax bill if they are required to sell assets. Fortunately for the executives, there is a little known tax provision that can soften the financial blow of becoming a government employee.
Among the wealthy executives in position to take advantage of the provision, known as a certificate of divestiture, are: Scott Bessent, founder of Key Square Capital Management, who is Trump’s nominee for Treasury; Cantor Fitzgerald CEO Howard Lutnick, who Trump has tapped for Commerce; and Linda McMahon, the former CEO of World Wrestling Entertainment, who is in line to lead the Education Department.
