Recently, Jeremy Goldstein, a partner at Jeremy L. Goldstein & Associates LLC, addressed the knockout options matter. In this case, he looked at some of the reasons that have led many companies to curtail the provision of stock options to their employees. According to Goldstein, the cause may emanate from a considerable decline in stock value, which has made it difficult for employees to use their options. Also, many employees have become cautious of this type of compensation method due to the risk of an economic downturn. Additionally, the reason is that stock options lead to significant accounting challenges.
Merits of Stock Options
Away from such challenges, Stock options are favorable compared to better insurance coverage or additional wages. The reason is that employees can easily comprehend them and they provide an aspect of equivalent value across all employees.
Stock options only result in an increment in personal earnings only when a company’s share value increases. As such, this motivates the employees to focus on the corporation’s success and growth.
Various Internal Revenue Service policies make it even more impossible for a company to supply its employees with equities. Hence, businesses are likely to face considerable tax burdens if they offer shares as opposed to stock options.
About Jeremy Goldstein
Jeremy Goldstein is an acclaimed lawyer as far as business law is concerned. He serves Jeremy L. Goldstein & Associates LLC in the capacity of a partner. The law firm is committed to advising CEOs, corporations, compensation committees and management teams on matters regarding corporate governance and executive compensation as well. Before becoming a founding partner, Goldstein worked for another law firm, Wachtel, Lipton, Rosen & Katz, as a partner. Academic wise, he is an alumnus of New York University and the University of Chicago where he attained his J.D. and M.S. respectively.
In his line of work, Jeremy Goldstein has dealt with several transactions involving some of the largest companies in the world. In fact, he was involved in the acquisition of Goodrich by UTC, Rohm and Haas Company by The Dow Chemical Company, ALLTEL Corporation by Verizon Wireless, and Genzyme by Sanofi-Aventis among many others. Away from his career accomplishments, Goldstein is well known for speaking and writing regularly on executive compensation and corporate governance issues. Additionally, he boasts several membership positions on bodies like Make-A-wish Foundation’s New Leadership Council, Fountain House and NYU Journal of Law and Business’s Professional Advisory Board.
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