Jeremy L. Goldstein is a partner at the Jeremy L. Goldstein & Associates LLC. The boutique law firm is dedicated to advising its clients on the best compensations methods. He has been on the frontline providing the risks and solutions of stocks options and shares as methods of employees or rather companies’. He advises CEOs, corporations, compensation committees and management teams. There are so many issues that arise in the field of the transformative and growing corporate industries.He has played major roles in some of the major transactions that involve huge companies like Duke Energy, Merck, Chevron, Verizon, AT & T etc. He has also worked as a board member in several prestigious law journals and a company called Fountain House.
Several corporations have stopped providing stock options to their employees as Jeremy Goldstein puts it. Some firms stopped this method in order to save money. The major reasons behind this are usually very complicated. Below are some of the problems that restrict companies from implementing these benefits are;
- Stock value can drop thus making it impossible for employees to enjoy the benefits of the option. This may make the employees lose their money and may think options are not a viable form of payment.
- Economic downturns may make these options worthless. Jeremy Goldenstein compares them casino tokens instead of cash.
- These options result in considerable accounting practice burdens. Many staff thinks it is not beneficial to them. They always think that higher salaries are much better than stock options will usually fluctuate depending on the economic climate.
Stock options though being disputed by many staff have very many advantages to a company.
- Staff members easily understand stock options and therefore becoming preferable than wages, insurance coverage, and equities.
- Also to make it clear, stock options will help boost corporation’s value. This will encourage employees and other stakeholders to specialize on the company’s success. The staff works harder to satisfy customers, develop competitive services and also attracting desirable clients.
- There are also internal revenue services which help make them considerably difficult when supplying employees with required equity. They face tax burdens when they provide shares instead of options.
Jeremy Goldstein also provided several solutions regarding stock options. He says that the company must always adopt the right strategies. They should also exercise the “knockout” barrier. The stocks have the same time limits and some vesting requirements as their conventional counterparts. It does not make sense when eliminating these benefits when the prices plunge for a few hours. It should only be canceled when the low price maintains the lower value for more than a week.
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