Jeremy Goldstein, a lawyer operating in New York, recently shared some advice to CEOs and companies pertaining to a new form of stock option offerings called knock-out options. Goldstein explained that normally there are lots of problems with stock options, but knock-out options can solve many of those issues.
Goldstein said it isn’t uncommon for companies to stop offering stock options due to decreasing stock value. While it is a good idea for companies to not offer stock options during economic downturns, once a company turns around it is a good idea to begin offering stock options once again.
The cons of knock-out options, in specific, are outweighed by the pros. Knock-out options provide a clear goal for an employee who decides to be payed this way. Knock-out options are capped at a certain value, and once the stock reaches that cap, the employee must sell to obtain their maximum profit. This eliminates costly services like hiring portfolio managers.
Knock-out options can also keep current investors happy. With knock-out options the market share is only given to employees for a limited time. Once an employee sells his shares he is done and is no longer holding valuable stock that other investors may be interested in purchasing. This short term plan for stock options is a great way to increase the morale of your employees yet keep more prominent investors happy. Learn more: https://www.avvo.com/attorneys/10019-ny-jeremy-goldstein-978103.html#client_reviews
About Jeremy Goldstein
Jeremy Goldstein is a partner at his own firm in New York. The firm is called Jeremy L. Goldstein & Associates, and it assists a variety of clients in and around New York. Goldstein has worked with CEOs, business managers, and more on sensitive issues like mergers, compensation, and other business matters.
Jeremy Goldstein is a prominent expert in M&A(Mergers & Acquisitions.) With his experience and expertise, he is responsible for many of recent year’s biggest mergers and acquisitions. He has assisted with mergers such as J.P. Morgan Chase & Bank One, Bank of America & Fleet Boston Financial Corp. and Verizon & ALLTEL.
Goldstein’s expert knowledge in M&A lead him to a position wit the American Bar Association as the chair for their M&A Subcommittee.
Creating a positive economic balance for businesses has always been tough to pull off. Jeremy Goldstein has witnessed many difficulties that can arise from an unhealthy balance between share holders and employees, largely resulting in reduced incentives for long standing employees. Having worked with huge names such as Goldman Sachs, Verizon, and Bank of America, Goldstein has recommended a way to handle the use of Earnings per Share (EPS) and many other incentive-based programs. He has also provided his opinion of the use of performance-based pay programs. Learn more: https://twitter.com/jeremy_gold1
EPS is typically a good thing for both share holders and employees. EPS is what shareholders look at when debating to buy or sell and it provides incentive for companies to raise employee wages. While EPS does seem advantageous, with the competition between shares and trading, ot can allow entities to use EPS to an unfair advantage. EPS can lead to favoritism towards CEOs and higher ups, Best case scenario: this is simply misleading but at worst: highly illegal.
Jeremy Goldstein recommends a compromise between the those for and those against EPS. Rather than getting rid of all pay per performance incentives, find a way to hold the higher ups in companies responsible for their individual actions by making sure their performance pay matches the long term goals of the company. This way, employees are still given incentives for their hard work and the long-term growth of the company is laid out.
Who is Jeremy Goldstein?
Prior to founding his own firm, Jeremy L. Goldstein was a partner at the law firm Wachtell, Lipton, Rosen & Katz. Since 2014, Mr. Golstein has been a partner at Jeremy L. Goldstein & Associates LLC, a boutique law firm in New York City dedicated to helping businesses. He has a Juris Doctor Degree from New York University School of Law, a Master of Arts Degree from the University of Chicago and a Bachelors cum laude with distinction in all subjects from Cornell University.
As well as working on cases with the huge companies above, Goldstein has worked with several cellular, banking, oil and petroleum, and stockholder companies. He also belongs to the American Bar Association Business Section and is the chair of the Mergers and Acquisitions Committee of the Executive Compensation Committee. Jeremy often donates to Fountain House, supporting them in their aid to those with mental illnesses.
Jeremy Goldstein is a prominent attorney who discussed the advantages of knockout options and how they can help employers. One of the advantages is that stock options are easy to understand, which means staff members shouldn’t have any problems learning about them. All employees who receive knockout options will be receiving something of equal value.
Another advantage that Jeremy Goldstein pointed out was that options can boosts personal earnings, if share value in the corporation rises. This gives people encouragement to make the company’s success a priority. It may mean they will work harder at making sales, providing better customer service and things of that nature.
Jeremy Goldstein mentioned how supplying employees with equities can be a bit difficult because there are certain rules in place. In short, businesses may be faced with lesser tax burdens if they provide options instead of shares. Learn more: https://www.business.com/advice/member/p/jeremy-goldstein/
A Little About Jeremy Goldstein
Jeremy Goldstein is a business attorney who has over 10 years experience. After working at an organization as a partner, he decided to launch his own law firm in New York. The law firm is called partner at Jeremy L. Goldstein & Associates, LLC. Throughout his career, he has been involved in major transactions involving major companies such as Duke Energy, Verizon, Merck and Bank One to name a few.
The attorney is a speaker and a writer. He frequently speaks and writes about corporate executive and governance compensation issues. Furthermore, he is a member of Fountain House’s board of directors.
As for education, he studied at the New York University School of Law. He graduated with a J.D., and he also holds an M.A. that he earned after graduating from the University of Chicago.