According to Jeremy Goldstein, companies have stopped to give employees stock options. Many companies were doing it to save money, but there were many other hidden reasons. One of the reasons is because employees may not be able to exercise their options if the stock value drops. Secondly, Jeremy Goldstein adds that because economic downturns might make the stock options worthless, many employees decide to avoid it. The other reason why companies have deviated is because of accounting burdens. As Jeremy explains, the financial advantages of this plan may be minimal than the cost of implementation. The employees know that there is a chance of getting higher salaries from the employer if this method is not implemented.
However, Jeremy admits that the method has its advantages in addition to other types of compensation plans like better insurance coverage, equities or additional wages. One advantage is that because the options are of equivalent value, the employees can easily understand them, and when the company’s share value rises, they boost personal earnings to employees. Through this understanding, the staff is encouraged to work hard because they know that if the company’s value increase, they, in turn, reap big.
Jeremy L. Goldstein & Associates LLC is a boutique law firm where Jeremy L. Goldstein is a partner since June 2014. The firm offers advice to corporations in the executive corporation, compensation committees, CEOs, corporate governance matters and management teams. He is active in the company’s compensation practice in issues arising with merger and acquisitions.
He is also involved in corporate governance executive compensation issues. Jeremy attended the Pingry School and also has Bachelor of Arts and Master of Arts degrees in Arts & History from Cornell University and Chicago University respectively. He also studied law at the New York University School of Law.
To learn more, visit http://officialjeremygoldstein.com/.