Jeremy Goldstein tries to explain how knockout options help employers. There are several corporations that have stopped offering stock options to their employees. This is due to the fact that the stock value may fall tremendously, which makes things hard for workers to exercise their options. Secondly, a number of employees have become cautious of this compensation method. They now fully comprehend that economic plunge often renders choices useless. Last but not least, options amount to considerable burdens. Staff members do not really consider this merit as vital as the higher salaries that an employer could pay if it was done away with.
If a firm wants to continue offering options to its employees, it can gain all the above mentioned benefits. In turn, it will be avoiding excessive costs by engaging the right strategy. The best remedy is to adopt a type of barrier called “knockout”. When the firm opts to offer knockout option benefits, on-employee investors are exempted the threats of overhang from options that no one can exercise. This is actually good for the existing stockbrokers since they do not have to worry about the dwindling ownership shares. Though knockouts do not really solve every problem in a firm, they tackle many of the challenges that are related to stock-based compensation. It is, thus, advisable for the company officials to be constantly in touch with the auditors about the divisions of supplying these options to the employees.
Jeremy Goldstein is a prolific attorney with more than 15 years of experience as a business lawyer. He holds a J.D from New York University School of Law, an M.S from the same university, and a B.A cum laude and with distinction in all subjects from Cornwell University. Jeremy Goldstein is a partner at Jeremy L Goldstein, a law firm that is deeply dedicated towards advising compensation committees, CEOs, management teams, and corporations in executive compensation and corporate governance matters. Before forming his own firm, Jeremy was a partner at Wachtell, Liptel, and Rosen & Katz.
Jeremy Goldstein serves as the head of the Mergers & Acquisition Subcommitte. It is worth noting that Jeremy Goldstein is also listed as a leading executive compensation lawyer. His knowledge and experience makes him an outstanding figure in the business world.
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