Providing employees with stock options is not as common as it once was. There are three main reasons this is the case. The first is that there is the risk that the value of the stock could drop far enough that employees of the company are unable to exercise their options. The second is that employees increasingly don’t like it because they saw what happened in the last economic downturn to stock values. Third, handing out stock options creates significant accounting burdens on the company.
There are advantages to giving employees stock benefits, though. One benefit is they’re easy to understand and all employees receive equivalent value. Second, they encourage employees of the company to work hard to increase the value of the company.
Jeremy Goldstein is an expert at compensation, especially executive compensation. He says that stock options can be a good way to compensate employees if the correct strategy is used. He says the best strategy is called a “knockout” in which employees of the company lose the option to buy them if the value of the company’s stock falls below a previously specified amount. This removes a lot of the burden of offering stock options, he says.
A resident of New York City, Jeremy Goldstein has his own law firm which is focused on executive compensation. He is an expert at advising CEO’s, compensation committees, and corporate management teams about the intricacies that this type of compensation entails. Jeremy Goldstein has been a practicing attorney for 18 years and earned his law degree at the New York University School of Law.
Goldstein opened his law firm, Jeremy L. Goldstein & Associates, LLC, in June of 2014. Over the course of his career, Jeremy Goldstein has provided his legal expertise to many companies that are in the S&P 500. His advice is especially sought in M&A transactions.
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