Jeremy Goldstein has been serving as a business lawyer for quite some time now. The 15-year expert on employee benefits compensation has set up his own boutique law firm in New York City called Jeremy L. Goldstein and Associates LLC. He has set up his own law firm after serving as a partner in a similar firm.
Mr. Goldstein has advised some of the world’s largest companies on employee benefits. These companies include Verizon, Chevron, AT&T, Duke Energy, Bank One and Merck. He has served in an advisory role during some of the world’s largest business transactions such as the acquisition of Goodrich by United Technologies.
Recently, Jeremy Goldstein has given out some free advice to companies concerning employee benefits and compensation packages. He recommends stock options over equity due to the extra tax burden put on equity by the IRS. Learn more about Jeremy Goldstein: https://blogjeremygoldstein.tumblr.com/ and https://www.linkedin.com/in/jeremy-goldstein-26aa1b4
But companies must be concerned with accounting costs when dishing out stock options as a form of compensation. In the end, Jeremy Goldstein is confident that stock options are the right choice for many companies.
But, he warns, stock options can create problems with shareholders and may even scare off investors. Many employees tend to cash out the stock options when the valuation of the company drops. This creates a conundrum called a hangover when the company does not have enough money to pay out its employees.
The knockout stock option eliminates this risk while keeping an employee incredibly motivated. The knockout stock option is removed from the employee if the value of the company drops below a certain valuation. This keeps the employee motivated to work hard in good times and in bad.
Jeremy Goldstein advises that the knockout option is attractive to shareholders and investors alike. The knockout eliminates the risk of hangover if the company’s value drops too low.