Jeremy Goldstein Talks Stock Options and Their Advantages

As times change, so does the corporate world. It’s not usually a place that changes too quickly, but there’s more going on than people think. Since social media, the tide has shifted all the power to people and employees. Employees are taking advantage of having their voices heard and asking for different benefits other than stock options.
Historically, stock options were the go-to employee benefit for most large companies. It perfectly combined the company’s appreciation the workers and workers’ desires to be a part of the company they worked for. Since then, people have become terrified of losing all the money because the company goes under.
Whatever reasons companies have for eliminating stock options, Jeremy Goldstein wants them to take another look at stock options. Everyone thinks they’re just like stocks they see in movies, but people don’t understand that there are different kinds of stocks.
If people understood that not all stocks behave the same way, they might be more inclined to want them. Regardless of what kind of stock options a company uses, they all have the same advantages. Firstly, stock options offer equivalency that other compensation methods can’t offer.
Secondly, stock options make people a part of the company. When people can see their work translated into higher stock values, they’ll become obsessed with ensuring the company’s success. They’ll work harder to keep current customers happy and develop innovative techniques to attract new customers. That kind of advantage is something that many companies don’t take into consideration. Learn more: https://www.linkedin.com/in/jeremy-goldstein-26aa1b4
Lastly, stock options may prove to be the better choice in the long run. Right now, stock options seem like the bigger tax burden, but recent IRS rules may make them a better choice. If companies are concerned about accounting burdens, stock options should remain the go-to employee benefit.
Jeremy Goldstein did not become a compensations expert overnight, and no one should think that about him. Jeremy Goldstein is a partner at his own law firm and was a partner at the similar law firm he worked before establishing his firm.
When Jeremy Goldstein isn’t working, he’s dedicating his time to local charities, especially Fountain House. Fountain House is a charity that focuses on the recovery of patients suffering from mental illness. Jeremy Goldstein sits on the Board of Directors.

New York Lawyer Jeremy Goldstein Believes Compromise For Employment Incentives Is A Good Idea

If you are trying to create a sustainable economic environment for corporations, get ready for a battle. Jeremy Goldstein realizes that in this climate it is the type of battle where long-term employees and investors stand to lose the most. That is why Goldstein is always available to handle any of Earnings Per Share questions that corporate officials might have.

 

Goldstein also realizes that the Earnings Per Share (EPS) system can seem like a good strategy for most businesses to utilize. However, there is a competitive undercurrent that can give certain entities unfair advantage when it comes to the EPS.

 

Goldstein also pointed out that opponents of the EPS system are concerned that it leads to favoritism and a “blind eye” turned toward the CEO of said companies. They are also concerned that unethical CEOs could also skew the results for brownie points with investors. Is this unethical? You bet, and at the very worst it is downright illegal.

 

Opponents also have other concerns, including their belief that these metrics only work for short term profitability. In the long run, they claim, this incentive only hurts companies because it hinders a company’s chance for growth and reinvestment of money. They also feel these metrics are extremely unreliable. Goldstein believes that Some EPS incentives is a good thing, but not too much. In short, he believes that a compromise is in order.

 

Goldstein’s solution? He says that doing away with pay per performance would create more problems than it would solve. He believes that there must be a way to make CEO and other company leadership accountable for their actions. He also promoted the idea that pay per performance should be appropriately aligned with the long-term plan of any company. He believes that is the best strategy for long-term growth and pay-incentives that doesn’t compromise the ethics of the company.

 

About Jeremy Goldstein

 

Jeremy Goldstein is an attorney who specializes in money legality with large corporations. In the past, he has worked with cellular companies, oil companies, banking companies and stockholder companies. He earned his Juris Doctorate from New York University School of Law. He also enjoys philanthropy, regularly donating to Fountain House in their quest to help people afflicted with mental illnesses. Learn more: http://officialjeremygoldstein.com/

Why Jeremy Goldstein Thinks Knockout Options Can Be Beneficial to a Corporation

Attorneys like Jeremy Goldstein, who specializes in part on advising on executive compensation issues, strongly encourage companies to offer stock options to employees. In addition to being easier to offer than equities, employees also understand that the worth of their stock depends on the company’s success. In this way, they contribute to morale and productivity.

 

To cancel out the risk of accounting headaches for employers due to dropping stock values, Jeremy Goldstein recommends what is commonly referred to as a “knockout” option. With this option, employees only maintain their stock if the value per unit does not drop below a set price for a significant amount of time, usually considered to be a week or more, within their term limit.

 

This can further contribute to productivity; employees who own stock will likely be more driven to further the success of the company so they can not only avoid losing their investments, but increase their value. Knockout options can also result in fewer accounting costs and more attractive annual earnings reflected to potential and current non-employee stockholders.

 

After spending 14 years as a partner at Wachtell, Lipton, Rosen & Katz, Jeremy Goldstein founded his own law firm, Jeremy L. Goldstein & Associates, LLC. In addition to executive compensation, he also advises on issues related to corporate governance matters. His legal services have contributed to several of the largest corporate transactions of the last 10 years.

 

Jeremy Goldstein received his J.D. from New York University School of Law in 1999 and has over 18 years of legal experience. He has also been a regular contributor to the Harvard Law School Forum on Corporate Governance and Financial Regulation over the past decade, and since 2008 has volunteered on the Board of Directors for Fountain House, a charity dedicated to mental illness recovery. Learn more: https://www.avvo.com/attorneys/10019-ny-jeremy-goldstein-978103.html#client_reviews