Jeremy Goldstein Provides Insight on Stock Options

Jeremy Goldstein is an associate and a founding partner of Jeremy L. Goldstein & Associates. This is a law firm that offers advice to corporations, business executives and CEOs on matters of compensation programs and corporate governance. Most of the issues occur after instances of mergers or acquisitions.

 

Jeremy Goldstein has written extensively on the issue of stock options being given by corporation as a form of compensation to their employees. Jeremy noted that there reason both in support and against such a move. Let us look at some of the reasons that show stock option as an unreliable means of workers compensation.

 

Employees usually avoid stock options as a means of compensation since they tend to fluctuate in value. In case that the stock options lose their value, they will be no longer be of any benefit to them. It is for these reasons that some employees opt out and take a salary increment instead.

 

However, on the contrary, there is one benefit that is related to stock options. Stock options are quite clear to employees on how they work. This makes it simpler for the company to implement it. Since the value of shares and that of the stock options are directly related, it, therefore, becomes clear to the employees that they must work hard to ensure that the share value increase since it will translate to a better compensation for them.

 

According to Jeremy Goldstein, the best form of stock options to invest in is the knockout option. The knockout option works on the basis of; if the share value of a firm drops below a specified level, the stock options of the employees will expire. This means that every employee will work hard to retain their stock options. In such a scenario executive compensation will be low and the shareholders are the ones who will benefit.

 

Jeremy Goldstein has a lot of experience working in the corporate sector. He has more than 15 years’ experience. He holds a bachelor’s degree from the Cornell University. He then went to the University of Chicago to do his masters. In 1999, he graduated with a doctorate in law from the University of New York.

 

Jeremy Goldstein has worked on many cases involving mergers and acquisitions at the Wachtell, Lipton Rosen & Katz. Here, he worked in some of the biggest corporate transactions at the time.

 

Apart from his corporate life, Jeremy Goldstein, in a philanthropist. He has contributed a lot to the attainment of charitable causes.

 

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