Through thereisnoconsensus.com, Jeremy Goldstein shares his insight on how Knockout Options are beneficial for employers. Large corporations have been withdrawing the benefit of stock options for their employees, in which Goldstein breaks down in three reasons for withdrawing stock options:
- Employees are unable to exercise stock options when a company’s stock value plummets
- Employees view this type of compensation useless when contingent on the economy
- Employees don’t view stock options as value or competitive as higher salaries
Jeremy Goldstein counters the prior reasons by saying that if employees were simply informed about all the benefits stock options provide, the benefits are of greater value than higher salaries, equities, and insurance coverages. The earnings of a corporation is directly correlated to an individual’s earning, therefore encouraging employees to prioritize their company’s success.
Jeremy Goldstein shares the solution of the “knockout” option: this particular option holds the same limits and requirements but employees lose the stock option if the share value falls below a certain amount for a certain amount of time.
Goldstein is currently a partner at Jeremy L. Goldstein & Associates LLC, a law firm that specializes in advising finanical committees, CEOs, management teams and teams relating to compensation and corporate governance matters.
Jeremy Goldstein earned his Juris Doctorate from New York University School of Law, an M.A. from the University of Chicago and a B.A. cum laude, with distinction in all subjects from Cornell University. From initially serving as a partner in a large New York Firm, Goldstein has been involved in numerous large corporate transactions with well-known brands including Goldman Sachs, Verizon Wireless, JP Morgan Chase, etc. He currently serves on several boards including the Executive Compensation Committee, American Bar Association, Professional Advisory Board, and the Board of Directors of Fountain House. He frequently writes and speaks to the community and has been a leading name within prestigious organizations.
To view the Goldstein’s full article on Knockout Options, click here.