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Jeremy Goldstein speaks out on Knockout Options

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What you need to know about Jeremy Goldstein

Jeremy Goldstein has over 15 years of experience as a attorney specializing in corporate governance and executive compensation. Jeremy Goldstein advises corporate CEOs who need advice on methods of offering benefits to employees. Jeremy Goldstein co-founded the boutique law firm Jeremy L. Goldstein and Associates LLC, which is located in New York City, New York. The firm specializes in advising CEOs and management teams.

 

Jeremy Goldstein has been influential in many significant financial transactions involving several major U.S. companies including AT&T, Bank One, Chevron, Goldman Sachs and Bank of America. Jeremy Goldstein also severs on the board of several organizations including the nonprofit Fountain House. He earned his law degree from New York University School of Law. Jeremy Goldstein has helped companies become more successful when it came to the issues of corporate compensation. Jeremy Goldstein helps companies with any financial matter they may need legal advice on. He works to make sure companies are succeeding when it comes to compensating employees.

 

Businesses big and small are beginning to no longer offer stock shares to employees as part of their benefit packages. Some are doing it to save money and others are doing it for far more complex reasons. There are three main issues that have convinced companies to end offering stock options.

 

  1. When the value drops rapidly, employees will not have enough time to sell their stock options. However, company accountants are forced to record all associated expenses, opening shareholders up to the risk of facing option overhang.

 

  1. Stock options are a unreliable form of compensation for some employees. Employees have learned that options can become worthless if there is a sudden economic downfall. They see the benefits as free play tokens at a casino instead of cash.

 

  1. Stock options only increase the burden on corporate accountants. The resulting costs could eliminate and financial benefit. Most employees say the would benefit more from a higher salary over stock options.

 

Benefits

Stock options are better than pay raises or equities because they are easy for employees to understand. Because stock value is tied to company success, they will work harder at making the company successful. When companies offer equities, they face numerous IRS rules they have to follow, creating a tax burden for the company. Knockout options are similar to their counterparts with the same vesting options and time limits. Learn more: https://www.slideshare.net/JeremyGoldstein14/