There once was a time when companies would provide employees with stock options freely. These possibilities have slowed due to a variety of circumstances. One of the most significant reasons a firm would do this would be to save money, but other ideas could be more unique.
Jeremy Goldstein explains three key issues a company may face that forces them to stop providing stock options to their employees. Jeremy Goldstein says the stock value may drop so significantly that employees cannot explore their options. Many have strayed away from stock options seeing them as a get rich quick scheme rather than stable money. Finally, Goldstein claims the burden these stock options inflict on employees makes them undesirable.
These stock options are far more beneficial for companies because if the companies share rises, an employee’s earnings go up. To strategize and reduce costs, Jeremy Goldstein suggests providing “knockout” options that have boundaries set in place, and employees lose them when the company can no longer afford them. Employees have no reason to be wary of “knockout” options because they have the same time limits and vesting requirements as their counterparts.
Jeremy Goldstein is a partner at his law firm where he advises in executive compensation and corporate governance matters. He is well versed as he has been involved in some of the most significant corporate transactions over the past few years, including the acquisition of Goodrich by United Technologies.
Goldstein is also listed as the leading executive compensation lawyer in notable publications and serves as a member of numerous councils and charitable foundations. His expertise in the field of corporate governance and executive compensation issues is sufficient and telling of his success.