Jeremy Goldstein, an expert in compensation for executives and management teams, believes that the recent trend of firms no longer providing stock options as part of compensation packages is not the answer to increasing concerns surrounding options. Over the years, companies have ended the practice due to rising costs when the stocks drop in value but the expense of the options reported. In addition, many employees look at stock options as a financial risk as the options value can end up worthless.
Jeremy Goldstein believes there are still many benefits to stock options as part of an overall compensation strategy including tax benefits and aligning employees personal financial interest with the success of the company. Jeremy Goldstein believes corporations can use the knockout option to hedge against some of the downsides of options while still reaping the benefits.
The knockout option protects the firm by being able to cancel the options when the share price drops below a certain amount for an extended period such as a week. Shorter option periods reduce the cost of the options to the firm while offering less risk to outside investors.
Jeffrey Goldstein is one of the top trusted financial lawyers when it comes to executive compensation for the major international corporations. With over 15 years of experience as a successful business attorney, Jeremy has led his firm Jeremy L Goldstein and Associates LLC to be the go-to firm for the major corporations including Verizon and Bank One.
Jeffrey Goldstein earned his undergraduate from the University of Chicago and went on to earn his Juris Doctorate from the New York University School of Law in 1999. When he is not advising clients, he can be found volunteering as the Director of the Fountain House, a nonprofit dedicated to assisting those who have a mental illness.
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