They usually do pay taxes on stocks and options received as compensation, but there can be shenanigans there too.
It works more like this. Phil Pates has stock in Microsoft that he got 40 years ago at $1 per share. Microsoft now trades at about $250, and Phil's stocks total are worth $1 billion or something.
Phil goes to the bank and takes out a line of credit against his portfolio at <1% interest for spending money--yes the rates are really that low for these things. He holds his stock and watches it grow way faster, and inflation drives down the value of the loan he took out too.
Phil dies and leaves the stock to his heirs. Inheritance tax exemption is now something like $25 million (lol), so even if inheritance tax were 100%, it's not like his heirs would be destitute. Oh, and the loans gets paid back and subtracted from the estate, so the heirs don't pay tax on the money Phil spent. But his heirs inherit the stock at the stepped up basis, so if they sell, it's as if they purchased the stock at $250 per share, not $1. They will not owe capital gains taxes.
Phil could spend $100 million a year or whatever and never pay a dollar tax. His tax return might show $0 income. He receives the full stimulus checks too. All in all, it's a pretty great system for maintaining dynastic wealth and ensuring the oligarchy don't pay taxes. And it became extra popular and profitable in the last 10 years due to low interest rates. Can't say the Federal Reserve never did anything for you!
So...the problem lies within the central banks giving these loans and not actually with the rich people. Geez, shouldn't we fix that part first?
Whenever I have been paid in stock it has always been a taxable event. How would that not be a taxable event for them?