Jeremy Goldstein: Working with Corporations

Jeremy Goldstein: Working with Corporations

In recent years, fewer corporations continue to provide stock options. Each has their own reason for dropping stock options, but New York corporations have a secret weapon that aids them in making that decision: Jeremy Goldstein. He suggests that corporations continue providing stock options for a number of reasons.

Stock options have three main advantages over other forms of compensation methods. While other forms seem easier to do, stock options are easier for employees to understand equality. Stock options provide a form of equivalent value for all employees that other forms of benefits can’t.

Secondly, stock options make employees a part of the company. If the company isn’t doing too well, the stock value goes down. When employees have a stake in the company’s success, they might work harder to ensure the company succeeds. That includes satisfying current customers, attracting desired customers, and potentially developing better services.

Another major reason corporations might want to take another look at stock options is because the IRS is cracking down on less-regulated services. A lot of corporations have started offering equities, but recent IRS rules have made offering equities as an employee benefit complicated. It might cost more to offer equities instead of stock options.

The solution Jeremy Goldstein offers is a “knockout” stock option. Stock options can be complicated if they’re explained. All the legal jargon usually makes people want something simpler. Knockout options have all of the benefits of their counterpart but none of the risks.

If the stock value drops too low, employees lose them, not putting them at risk of option overhang. They regain them if the stock value goes back up and goes higher. If the stock stays low for more than a week, then employers can eliminate the option. This prevents people from overreacting to a temporary situation.

Jeremy Goldstein knows all about employee benefits. He has more than 15 years of executive compensation experience. He’s written dozens of articles and spoken at numerous events about executive compensation and corporate governance. He’ also sits as a chair of the Mergers and Acquisition Subcommittee, a subcommittee of the Executive Compensation Committee, part of the American Bar Association Business Section.

Goldstein’s been on the fast-track since earning degrees from multiple universities. After establishing Jeremy L. Goldstein and Associates, he started working on some major cases with big-name clients.  Learn more: