Jeremy Goldstein is a legal expert and businessman located in New York where he also leads his own law firm, Jeremy L. Goldstein and Associates LLC. Jeremy and his staff offer world-class representation in legal matters as well as advisement services to their clients. Many of the cases at Jeremy Goldstein’s law firm revolve around executive compensation and corporate governance. Jeremy Goldstein is also a member of the American Bar Association Business School through his position as chairmen of Mergers and Aquisition of the EEC. When not working as a compensation lawyer, Jeremy is also a regular speaker at conferences talking about law and business. He also likes to write and publish articles through big news outlets about various topics in the legal and business industries.
Not too long ago, Jeremy Goldstein talked about the possibility of a knockout option for corporations as a way of keeping incentives for their employees without the typical risks that come with using stock options. In the past, stock options were regularly used for employees but have since nearly disappeared due to the risks they pose in the world of business today.
When it comes to stock options, they can drop in value on the market, just like anything else. In this case, using them as compensation or incentive doesn’t end up working out. It also typically makes for much more work on employees, therefore more fees (https://www.slideshare.net/JeremyGoldstein14/22nd-annual-naspp-presentation-2014). Employees typically don’t favor having stock options in the first place though, as they would rather have higher paychecks every week instead.
All this being said, out of the various compensation methods being used by corporations these days, stock options aren’t all that bad. They are the most simple to explain and give out to new employees as well. Also, when the stock value of a company rises, so does that of the stock options used as compensation. In this case, motivated employees creates a more productive company and the more productive a company is the more it will experience new growth. This in turn means higher company value and stock values. In the end, Jeremy believes a compromise will need to be made in order for the industry to continue in a positive direction.