Corporate lawyer Jeremy Goldstein is working with companies who are worried about offering stock options. Lately, companies have begun cutting out stock options as part of employee stock options. Some of them claim they do it to save money. There are several issues that cause companies to cut these benefits. First, if the stock value drops suddenly, it will make it impossible for employees to execute their options. Company accountants are forced to report all related expenses and stockholders are also forced to face the risk of option overhang. Stock options also cause massive accounting burdens. Learn more: http://files.ali-aba.org/pdf/Goldstein%20new%20BIO.pdf
Stock options still have benefits despite the critics. The stock value is tied to the company’s success which causes employees income to increase. This will convince employees to work at drawing in new clients and satisfying current clients. Stock options are preferred because they don’t have as much of a tax burden on the company as shares do. For those who are interested in awarding employees with options, they should consider knockout options. Knockout options eliminate the obstacles that come with stock option compensation. Another benefit for the company is if they wait half a year before awarding new options, if not they may face a negative impact on their quarterly financial statement.
Jeremy Goldstein is a corporate lawyer based in New York. He specializes in corporate governance and executive compensation. He has been influential in several large corporate transactions involving companies such as United Technologies, Verizon and AT&T. Jeremy Goldstein is the founder of the boutique law firm Jeremy L. Goldstein and Associates, LLC. He was previously a partner with Lipton, Rosen & Katz from 2000 to 2014. Goldstein got his law degree from the New York University School of Law. Jeremy Goldstein attended Cornell University, where he earned a bachelor of arts degree.