As companies continue to no longer provide employees stock based compensation, Jeremy Goldstein is offering them alternatives to share based stock. Companies are claiming they are stopping in order to save money. Others are doing it for far more complex reasons. There are three issues that have convinced companies to to stop. Learn more: https://profiles.superlawyers.com/new-york-metro/new-york/lawfirm/jeremy-l-goldstein-and-associates-llc/a958e5a0-ace7-44fa-8f53-da9d83c3b29b.html
- As the value of the stock drops suddenly, employees will not have enough time to sell their options. Companies will also be forced to report all related expenses, forcing stakeholders to face the risk of option overhang.
- Employees do not trust stock options, because they have realized that the economy can change at any time and turn their stock worthless.
- Options cause massive accounting burdens for companies. The associated costs can sometimes negate any financial gain made.
Despite what critics say, Jeremy Goldstein believes there are three main advantages to stock options.
- Stock options are easy for employees to understand.
- Stock options only increase employees income if the firm’s value rises. This will cause employees to work harder at improving the company’s value.
- Companies face massive tax burdens when they offer shares instead of stocks.
The solution is simple and it’s called knockout options. They come with no risk to shareholders and are not a risk to employees. They are similar to their counterparts with the similar vesting requirements and time limits.
Jeremy Goldstein is a business lawyer with over 15 years of experience. Jeremy Goldstein started his own law firm, Jeremy L. Goldstein and Associates and specializes in corporate governance and executive compensation. Jeremy Goldstein has been influential in many corporate transactions involving companies such as Verizon, Chevron, United Technologies and Merck. Goldstein is based in New York City, new York. He continues to advise corporate executives when it comes to employee benefits and financial matters.