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.