Category: Law Lawyers

Jeremy Goldstein explaining knockout options to companies

Over the years companies have begun getting rid of stock options from corporate benefit packages. Some are doing it to save money and others do it for a variety of reasons. There are three main concerns that have convinced employees to drop stock options entirely. Learn more:

1. When the stock value drops, employees do not have enough time to execute their options. Regardless, the company still has to report all associated expenses. This forces stakeholders to face the possibility of option overhang.

2. Employees do not trust this type of compensation. Employees understand that when the economy is in a downturn, their options could become worthless. They see these benefits as more of casino chips rather than actual cash.

3. Having stock options increases the burden on corporate accounting. The resulting costs could negate and financial benefits gained. Most employees believe they would rather have a pay raise instead of stock.

Despite all the negatives, there are some benefits. Stock options are easy for employees to understand. Since the stock value is tied to the value of the company, it will cause employees to work at making the company successful and become more creative in their job. There are more tax burdens if a company offers stock shares instead of stock options.

One strong advocate of options is Jeremy Goldstein. Jeremy Goldstein is a corporate lawyer based in New York. He specializes in corporate governance and executive compensation. He has over 15 years of experience. Jeremy Goldstein is the founder of boutique law firm Jeremy L. Goldstein and Associates. Jeremy Goldstein has had a key role in several major corporate transactions that have involved several major American companies such as AT&T, Verizon, Chevron, United Technologies and Merck. Jeremy Goldstein serves on several boards including the board for the nonprofit Fountain House.