Category: Lawyers New York

JEREMY GOLDSTEIN’S SOLUTION FOR STOCK OPTION CRISIS

Jeremy Goldstein is Jeremy L. Goldstein & Associates’ Partner, a firm of boutique law specialized in advising compensation groups including CEOs, corporations, committees and management teams concerning executive compensation and matters of corporate governance especially when issues arise in sensitive situations and incorporate events transformative context. He has been a part of many huge corporate transactions in the past ten years including Goodrich acquisition by the United Technologies, Schering /Merck Plough Corporation, ALLTEL Corporation/ Verizon Wireless and Euronext/NYSE Group Inc. among others. He is a fluent and frequent addresser on executive compensation and corporate governance issues making him the lead lawyer of executive compensation in the USA Guide Chambers to the Leading lawyers of America for Business.

 

Numerous corporations recently decided to end the providence of stock options to their employees. Some firms reasons behind this act were saving money, but the real reasons for most of the companies remain complex. However, Jeremy Goldstein provided three major reasons that make companies cut of these benefits from their employees. The first reason is when a company suffers a significant stock drop leaving it with no option than to stop the employees benefits so that business can continue reporting to expenses associated with its progress. Again, employees have stopped trusting this method of compensation. They fear that with the economic downturn, the stock becomes worthless leaving them with tokens on their end. When Stock options result in substantial accounting burdens, it leads to more expensive costs than financial advantages. This way, employees prefer higher salaries than stock benefits as compensation.

 

Nevertheless, stock option compensation can also be promising with additions on equities, improved insurance coverage or wages that have equivalent value to the employees. This is because staff members understand the stock options better. This option only boosts a person’s earnings if the share values of a corporation rise. Employees are also motivated to put the success of the company first for positive personal investment.

 

Jeremy Goldstein added that certain rules by the service of Internal Revenue make it difficult for corporations to supply equities to their employees. This happens when companies develop packages of compensation for upper executives making or when businesses suffer huge tax burdens if equities are provided to employees unlike when they provide their employees with stock options. Learn more: https://www.visualcv.com/jeremygoldstein

 

To end the stock option Crisis, Jeremy Goldstein introduced a knockout barrier to offer a solution. It assures employees that a firm’s stock value will not drop giving them the advantage of earning more when the share price rises.