If non cash rich billionaires have to sell stocks to pay taxes how do they stay in control of their companies?
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Firstly most billionares do not pay taxes. Only income is taxed and as long as they do not have any income on paper they do not pay taxes. It does not mean that they are not able to enjoy their wealth but it is done through various ways which does not involve any income.
One common way to raise cash without selling stock is to take up loans using the stock as security. If they default on the loan the bank will get the stock. So on paper they will be in massive debt. This does allow them raise funds for things like luxury trips and even the little taxes they might pay. This is by the way how Musk just got the money to buy Twitter.
But even considering this there are valid reasons for parting way with stock in a company. One common way is to raise funds for the company to expand. So it is not that uncommon for a “founder and CEO” to own less then 10% of their company. But as long as the other investors have faith in them and trusts them they can retain control over the company. However there have been situations where people have lost control over their own company. Most public was when Steve Jobs was fired from Apple by the other investors, he did eventually get hired again after a few years though.
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