Jeremy Goldstein Encourages Corporations to Use Knockout Options Instead

According to Jeremy Goldstein, the popularity of employing stock options is waning. Corporations are no longer interested in giving this made of compensation anymore since they ran into some difficulties. While some companies issue employee stock options to save on money that could otherwise have been paid as salaries and executive bonuses, some factors are slowly dissuading them from the method.

 

Some of the problems that are standing in the way of the stock options include; the problem of stock market volatility that sees corporate stocks drastically drop making it impossible for employees to exercise their option; employees do not take the stock options serious anymore as they are aware of the inability to exercise options during economic downturns; corporations are now shying away from the accounting costs that come with the stock options as sometimes they outweigh their financial benefits.

 

Nevertheless, Jeremy Goldstein maintains that employee stock options are still a good method especially when they encourage employees to work harder and to improve the value of the firm. It is also true that options come with tax incentives compared to compensation in equities. Jeremy Goldstein is of the view that many corporations can still maintain the positive benefits of stock options while curbing disadvantages using knockouts.

 

Jeremy Goldstein is one of the topmost lawyers advising corporations on matters of executive compensations. With more than fifteen years as a corporate lawyer, Jeremy Goldstein is easily an authority on matters dealing with compensation. Mr. Jeremy Goldstein is the current chair of the Mergers & Acquisition Subcommittee of the Executive Compensation Committee of the American Bar Association Business Section.

 

Jeremy Goldstein has used his experience to see some of the biggest deals in the corporate world through. Some of the deals include the Dow Chemical Company/Rohm and Haas Company deal and the acquisition of Goodrich by United Technologies.

 

Connect with Jeremy Goldstein on LinkedIn.