Many corporations have traditionally offered stock options to employees as part of a benefits package. However, this trend has drastically slowed down due to financial concerns and other more complicated reasons. Corporate law expert Jeremy Goldstein recently discussed the pros and cons behind stock options, in addition to some practical solutions for corporations.
Goldstein explains that stock options are tied to a market that can change rapidly and decrease the value of stocks. Businesses are still required to report the expense of stock options, and some employees may have a sense of wariness when recognizing the risk involved. Stock options also create much more work for the accounting department of a corporation, and the expenses could simply be used for higher base pay.
According to Jeremy Goldstein, there is a simple solution to find a middle ground. He recommends using knockout stock options for the benefits packages of employees, as it allows each individual to hold stocks as long as they remain above a certain value threshold. The specific stock options give employees increased incentive to keep the value high, and offer less complications to earnings disclosures and other accounting reports.
Jeremy Goldstein is an acting partner at the law firm Jeremy Goldstein and Associates LLC. Goldstein’s firm primarily handles special litigation related to compensation of corporate executives and management of companies during transitional periods. Goldstein has been a part of major transactions involving corporate acquisitions or mergers. He has years of experience in high-profile litigation prior to creating his own law firm, becoming recognized as a prominent figure in corporate law.
Goldstein received his Bachelor of Arts degree from Cornell University. He also earned a Master’s degree after attending the University of Chicago and ultimately graduated from New York University with his J.D. degree. Jeremy Goldstein regularly speaks at corporate events and contributes his writings to numerous publications on the subjects of executive compensation and corporate governance.
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