Jeremy Goldstein is a legal advice attorney who specializes in employee benefits. With over 15 years of experience, he is aware of the turmoils and solutions to various problems. In fact, he has established his own independent law firm after working with a similar company.
Moreover, Jeremey Goldstein has been involved with transactions with corporate giants such as Verizon, AT&T, and Merck. He has also has served on the boards a distinguished law organization named Fountain House. In essence, his opinions are validated with years of experience and should be sought after by any company.
Recently, Jeremy Goldstein explained an alternative to stock options. For many years, stock options have been a vital role in providing employee motivation and satisfaction. However, the problems associated with it has caused companies to no longer make it available to its employees. Goldstein highlights three main reasons for companies hesitant on stock options.
Firstly, the stock value may drop, which would make it impossible for employees to use their options; there is simply too much risk. Secondly, many employees are skeptical of this compensation method as they know about the economic downturns, causing them to lose any margins previously held. Lastly, they result in significant financial burdens, causing companies to lose millions.
Jeremey Goldstein offers a solution: knockouts option. They are similar to stock options, but if the stock price falls below a certain limit, employees lose their option altogether. This option fixes many of the problems posed by the stock options. For example, knockouts initially require low accounting costs, which fixes the financial burdens. Goldstein explains that when companies favor the knockouts employees no longer face overhang, thus they will worry less and work harder. Although knockouts fix many problems, it doesn’t solve all of them. Companies will still need to wait five to seven months before implementing it.
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