Recently, many organizations are opting not to provide employees with stock options. Some companies do this to save money, but at times the reasons are more complicated.
Jeremy Goldstein explains the three major issues that make organizations curtail such benefits. Some employees consider this form of compensation unsuitable due to economic downturns that make the option worthless. Read more: Jeremy Goldstein | Chambers and Partners and Exclusive NYC Wine Dinners Hosted by Attorney Jeremy Goldstein and Friends over 56000 for Fountain House
Another reason is that this option often results in significant accounting burdens. The related costs might be too high thus rendering the financial benefits of the alternative negligible. Some staff members prefer higher salaries instead of stock options.
The third reason is that the stock value might drop significantly thus making it difficult for employees to exercise their options. Learn more about Jeremy Goldstein: https://www.americanconference.com/executive-compensation-836l17-nyc/speakers/jeremy-goldstein/ and https://www.visualcv.com/jeremygoldstein
All the same, Jeremy Goldstein advises that this method of compensation can be preferred to additional equities, and wages.
Staff members can understand stock options quickly, as they offer an opportunity that is of equivalent value to all the employees. Also, stock options improve personal income if the corporation’s share value increases.
About Jeremy Goldstein
Goldstein is a partner at Jeremy L. Goldstein and Associates, which is a law firm that is devoted to advising CEOs, compensation committees and management teams on corporate governance and executive compensation matters. Before Jeremy founded his company, he was a partner at a major New York company.
Mr. Jeremy Goldstein has been involved in some of the most prominent transactions over the past decade. They include the acquisition of Duke Energy by Progress Energy and that of The Dow Chemical Company by Rohm and Hass Company.
He serves as a chair of the Mergers and Acquisition Subcommittee of the Executive Committee of the American Bar Association Business Section. Jeremy is also an avid writer and speaker on corporate governance and executive compensation matters. Goldstein has stood out as a leading executive compensation lawyer, having even been recognized by The Legal 500.