When it comes to employees benefits, corporations go to Jeremy Goldstein for his expertise. Jeremy Goldstein has been a business lawyer for the last 15 years and specializes in executive compensation and corporate governance. After establishing his own law firm, Jeremy L. Goldstein and Associates LLC, his reputation grew exponentially.
Over the years, he played major roles in ever big-name transaction his firm’s dealt with, including transactions involving Verizon, Chevron AT&T, and Bank One. Jeremy Goldstein also serves on the Mergers and Acquisition Subcommittee of the Executive Compensation Committee, which is part of the American Bar Association Business Section.
In recent years, Jeremy Goldstein’s been called to a lot of corporate offices to discuss employee benefits. Lately, a lot of corporations stopped offering stock options as a compensation method. They view stock options as unwanted hassles that only clog up their accountant’s office. They go to Jeremy Goldstein seeking new benefit options.
Many people are surprised to hear that Jeremy Goldstein doesn’t think everyone should get rid of stock options. Stock options are a handful and some companies would do better by eliminating them and providing other benefits, but not every corporation should be so quick to do the same.
In most cases, eliminating stock options and offering higher salaries or better insurance coverage is easier but not recommended. Employees may prefer something simpler, but they’re not thinking about equivalency among themselves. Higher wages mean a greater imbalance between workers, whereas stock options offer a level of equal value to all employees.
Recent may make it difficult to provide equities to employees, which was a lot of corporations’ plans. As the IRS adds more rules and regulations, offering stock options may be the better choice simply due to tax burdens on equities.
What it comes down to is how much do companies want to spend, in both time and money. Stock options hold the most benefits if the corporation chooses the right strategy. According to Jeremy Goldstein, maybe the right strategy is using “knockout” stock options. They do exactly what it sounds like they do.
If the stock’s value drops too low for too long, the option cancels itself, and the employee is not responsible for it. If the value goes back up, it becomes available again and the employee can exercise it whenever they choose. Learn more: http://officialjeremygoldstein.com/published-works/