Jeremy Goldstein is a partner in a law firm namely Jeremy L. Goldstein &Associates. The company offers to advise compensation, and corporate governance matters when issues related to corporate events that are transformative and sensitive situations arise. Before founding his firm, he used to partner at Wachtell firm.
Jeremy Goldstein in the past years has involved himself in many corporate transactions including South African Breweries brewing company, Phillips Petroleum Company, and many others. Mr. Jeremy Goldstein writes on issues such as corporate governance and also executive compensation in Chambers USA guide.
Employees no longer get stock options from the companies they work at so that the companies can save money. Other reasons include stockholders being subjected to the risk of overhang should the value of stock drop. Also, employees are aware that in the eventuality of a downturn, options at stake are worthless, and even those options lead to accounting burdens.
Regardless this compensation method used is advantageous since its simple to understand. The company’s success is also prioritized since options only boost personal earnings. Still, when corporations offer compensation packages, they don’t face higher tax burdens when they use options as opposed to using shares.
A company awarding options stands to benefit from the advantages discussed above. Companies should adopt knockout solution where the options have same time limits. The knockout mechanism might reduce initial costs as each option is valid for a shorter period. Knockout clauses result to lower figures of compensation, and the solution provides the employees with strong incentive.
Stock options don’t solve all problems but at least tackles the biggest hindrances. When options expire, companies may benefit from awarding them after six months to prevent negative impact on the financial statement. Companies go to Jeremy Goldstein when they need legal advice on employee benefits.