Nowadays most organizations are reconsidering whether to give their employees stock options. The main reason is to save money. According to Jeremy Goldstein, a business lawyer, there are other reasons for this. A significant drop in stock value renders these options valueless. Another reason is that the options come with substantial accounting burdens thus higher wages may seem a better option than stock options.
Options are advantageous though because they encourage employees to work harder for a rise in share value and consequently corporate success. Options are also tax-free hence can save money for a firm. Jeremy Goldstein recommends a barrier option referred to as knockout as the strategy. Employees lose these knockout options when the share value drops beyond a certain amount and for over a week. With knock out options, non-employee investors are not getting over-hang threats and hence worry less about declining ownership shares. Though this strategy does not solve every problem, it removes the obstacles to stock-based compensation designs.
Organizations turn to Jeremy Goldstein for legal advice on compensation cases. He currently works at Jeremy L. Goldstein & Associates LLC as a partner. He founded the law firm in 2014. He previously worked at another similar company. His experience in the field spans over 15 years. He is an alumnus of Cornell University where he majored in Art History. Jeremy Goldstein also went to the University of Chicago from where he obtained a Masters in Art History. He also attended New York University’s Law School.
He has had a robust career, interacting with big companies and getting involved in high-profile corporate dealings and transactions. Notable is the Goodrich acquisition by UTC. Other firms include Duke Energy, Chevron, Verizon, and AT&T. Jeremy Goldstein is a Voluntary Director at Fountain House.
Visit http://jlgassociates.com/ to learn more.