Jeremy Goldstein Talks About The Benefits Of Stock Options To Employers
Often, corporations have considered offering employers with stock options. This strategy helped the firms to save money while also helping the employees to secure investments. However, lesser companies are now providing their employees with stock options. In his recent article, Jeremy Goldstein explains the reasons why companies are reluctant to offer stock options.
According to the Jeremy Goldstein, stock options are becoming rare owing to three main reasons. First, the value of stock has dropped in the recent years. This situation is attributed to a series of economic crises that have seen many companies going under or being rescued by the government. Secondly, employees believe that stock options expose them to risks. Employees continue to consider stock as a bet and not a worthy option to cash. Lastly, stock options are associated with accounting burden on the corporations. Big corporations will need complex systems and many accountants to handle this form of compensation, thus increasing their operating costs.
However, stock options have many benefits. First, stock options offer a unique compensation method that is of equivalent value to all the company’s employees. Secondly, when the company’s share prices rise, it leads to improved personal earnings to the employees. This way, employees are encouraged to work harder and improve the company’s performance with the objective of boosting their personal earnings.
Jeremy Goldstein is a renowned lawyer and shrewd entrepreneur. He is the founder and a partner at Jeremy L. Goldstein & Associates, LLC. The boutique law firm offers its tailored advisory services to compensating committees, management teams and chief executive officers of different companies. Its services have helped many companies to compensate their top leadership in compliance with the set laws.
The lawyer is the chairman of the Mergers & Acquisition Subcommittee of the Executive Compensation Committee of the American Bar Association Business Section. Jeremy Goldstein holds a JD from the esteemed New York University-School of Law and a master’s degree from the renowned University of Chicago. Moreover, Jeremy is an alumnus of Cornell University where graduated with a BA degree.
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