Jeremy Goldstein is an executive compensate expert, and he explains some complicated reasons have led to many companies stop giving stock options to its employees. The stockholders might face the risk of option overhang because the companies must report all the associated expenses to them. The employees may not be able to implement their stock options if the value fluctuates and it’s a loss to them. Additionally, the employees are afraid of the compensation method due to drastic fall in stock value which might render them worthiness. Last but not the least, the company may incur accounting burdens.
Some benefits of the plan are additional wages, equities, and better insurance coverage. Jeremy Goldstein also observes that employees’ personal earning increase as the stock options gain and hence the company’s success. The employees work hard to attract and maintain more customers to keep the company on the profit making track. He adds that stocks are better compared to shares because they don’t draw heavy tax burdens to the company. To avoid extra cost in implementing the plan, the company can adopt knockout barrier strategy. This kind of option gets rid of the obstacles arising from stock-based compensation, but the company should first discuss with the relevant stakeholders before implementation.
Jeremy Goldstein holds a BA degree from Cornell University. He also has a Masters of Arts from Chicago University. Jeremy also has a J.D (Juris Doctor) degree from New York University School of Law. Jeremy Goldstein is currently a partner since 2013 at Jeremy L. Goldstein & Associates, LLC.
Through the experience of over 15 years as a business lawyer, Jeremy provides legal advice on matters compensation to companies. He also advises them on compensation program to apply for the employees’ benefits. He participated in acquisition deals at Chevron, AT & T, Duke Energy, and Verizon among others.
Connect with Jeremy Goldstein on LinkedIn.