If you have followed closely business compensation activities, there is a trend you have noticed by now. Unlike in the previous years, most companies and employers are changing their compensation tactics from the traditional stock options to the Knockout options. According to these companies the main reason has been to save money, but according to Jeremy Goldstein an expert lawyer in corporate matters the reasons behind this decision is more complex. In an effort to bring everybody to speed, Jeremy Goldstein explains the three main reasons that have lead to the change of heart by most employers in using the stock options as their compensation method.
The first reason has been the recent drop in stock values. With this development, stock options have continually deteriorated making it rather difficult for the investors and employees to exercise the powers in their options. Secondly, employees recently have become wary of this compensation method. The realization that economic decline renders the stock options as useless as the casino tokens have employees get disinterested in these options. Lastly, the stock options have become a big accounting burden to the employers. According to Jeremy Goldstein the current costs needed to maintain these options are far much more compared with the financial benefit these options bring.
With the stock option out of the picture, there is need for businesses and employers to get a substitute compensation plan. Jeremy Goldstein advice and recommendation is on the Knockout option. According to him, this option is much better compared to equities, additional wage or better yet insurance plans. Employers have a shot at this option since they offer equality to their employees and encourage the growth and development of the firm. When it comes to knockout options, as the firm’s shares increases, the employee’s’ earnings increase too. This scenario encourages employees to work harder towards the company.
About Jeremy Goldstein
Jeremy Goldstein is the managing partner and founder of Jeremy L. Goldstein & Associates LLC a leading New York law boutique firm. With an M.S from the University of Chicago and a J.D from New York University, Jeremy Goldstein is quite competent when it comes to matters corporate law. Prior to founding his own law firm Jeremy Goldstein held different positions at a number of law firms where he grew his experience in the industry.
Mr. Jeremy Goldstein is currently based in New York City and offers his services to both corporate and individuals. Aside from representing the needs of his clients and offering excellent advisory services, Jeremy Goldstein involves himself in mentoring young lawyers and other philanthropic activities as part of giving back to his community.
Visit http://jlgassociates.com/ to learn more.