Jeremy Goldstein believes that stick options are fast losing their viability as remuneration method for employees in many companies. There are three reasons for this, according to Jeremy Goldstein. The first is that stock options are notoriously unstable. A company’s stock could make a significant drop in the market, making it quite difficult for employees to exercise their options.
The second reason is that employees have become quite opposed to this payment method in recent years.
Well aware of the volatility of stock options, they have come to equate them with casino tokens, with their worth dependent on a gamble. Learn more about Jeremy Goldstein: http://thereisnoconsensus.com/jeremy-goldstein-explains-knockout-options-help-employers/ and https://www.crunchbase.com/person/jeremy-goldstein#/entity
Stock options are still a viable option for insurance cover, wages and equities though. The reason for this, Jeremy Goldstein explains, is that they provide a more equitable opportunity where employees earn the equivalence of their value.
They also boost the employees’ earnings when a company’s stock gains value. This would ensure that employees prioritize organizational success since their personal financial growth is dependent on corporate growth.
It is also legally easier to offer stock options for companies than it is to offer equities. Some IRS revenues make it quite difficult for businesses to offer employees assets. The way around for businesses, therefore, is to adopt knockout options. Employees receive options and only lose them if they drop below a certain margin over s considerable period, say a week.
Jeremy Goldstein is a partner at Jeremy L. Goldstein and Associates LLC. Jeremy L. Goldstein and Associates LLC is a law firm that specializes in advising top management personnel and corporations on compensation and governance, especially on complex issues.
He is also chair of the Mergers & Acquisition Subcommittee of the American Bar Association. Jeremy Goldstein has authored several books and is also a public speaker, passing advice on corporate compensation and governance.
Jeremy Goldstein worked at another law firm Wachtell, Lipton, Rosen & Katz before founding his firm.