There are some interesting issues that make employees enjoy working in a company, and one of them is the stock option. For those organizations with effective strategies for stock options, they have several advantages to the stockholder, the company, and the employees. The reason being, they make the employer prioritize on the company’s success, which in return upgrade one’s personal earnings when the share value of the company increases. As a result, this increases the employee’s number of choices that they can choose their benefits from. However, in the recent past, most companies no longer offer the stock options to their employees, for certain reasons.
First, as Jeremy Goldstein, a prominent business lawyer explains; most companies consider stock option a burden when it comes to accounting. As a result, to some extent, they might overweigh the benefits. Secondly, Jeremy highlights that some of the stock may be unusable and worthless to the employee if they drop their price. Lastly, some companies no longer equip their employees with stock options, as most employees understand the economic downturns that can lead to their stock options rendered worthless.
It’s for these three reasons that Jeremy Goldstein recommends companies to use the Knockout options.This Knockout option expires when they reach a certain limit, thus reducing the cost of accounting, and shrinking ownership shares. In addition, the investors, who are non-employees, do not encounter the option overhang threats, in case the invested company adopts Knockout options.
Jeremy Goldstein is a successful business lawyer, with over fifteen years’ experience, serving and holding significant roles in multinational corporations and transactions that require legal advice. Some of these companies include Duke Energy, Chevron, Merck, and Verizon, among others. His vast professional experience from and a strong educational foundation in Law, from New York University, and Cornell University, are the impetus behind his success. This foundation propelled him to partner in a law boutique firm in 2014, based in New York called the Jeremy L Goldstein & Associates LLC. The company specializes in giving legal advice to companies and executive CEO’s, through his areas of specialty, namely; governance, private equity, merger and acquisition, employment law, and corporate finance among others.
Through dedication and credibility, Jeremy Goldstein has gained recognition, as a compensation lawyer by the Legal 500.As a result, he is highly placed as a leader of prestigious organizations among them the Law Journal and Fountain House.
Visit http://jlgassociates.com/ to learn more.