Companies are slowly locking out employees from enjoying the benefits of having stocks. Reasons behind their decision are complex to understand. Some companies don’t issue their workers with stock options for them to save money. Others are afraid that workers may use the stocks as leverage for compensation. Despite their complicated reasons, stock options can benefit corporations in many ways as Jeremy Goldstein notes.
Stock options encourage employees to work harder since their earnings depend on their company’s success. They can also be used as compensation for employees’ insurance coverage, equities or additional wages. Goldstein believes that they provide something to all workers with an equal value. According to him, a company can only gain these benefits by adopting a strategy known as “knockout.”
The “Knockout” Strategy
Jeremy Goldstein uses the term “knockout” to imply that stock options share the same timeframe and requirements for investing. Workers of a particular firm automatically lose them as soon as a share value goes below a particular amount. Goldstein also points out that accounting costs reduce if a firm with volatile stocks adopts this strategy.
Jeremy Goldstein’s Career Background
Jeremy Goldstein is an alumnus of the New York University School of Law, JD graduate, and the University of Chicago, M.A graduate. He also earned an undergraduate B.A degree from Cornell University. As a lawyer, he is involved with Jeremy L. Goldstein & Associates, a law firm he founded. He uses his expertise in executive compensation and corporate governance to attend to clients’ needs at the firm.
Goldstein facilitated corporate transactions involving corporations such as J.P Morgan Chase, The Dow Chemical Company and Goldman Sachs. As a board member, he is affiliated with NYU Journal of Law’s Professional Advisory Board and Fountain House’s board of directors. Jeremy Goldstein is also a writer and speaker on executive compensation and corporate governance issues.
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