Jeremy Goldstein has years of experience in the corporate world and is known as an expert on advising compensation committee for the top management executives in the company. For years, Jeremy Goldstein has advised hundreds of firms across the United States regarding how to distribute the compensation to be provided to the upper slab of the management, which includes the CEOs, President, and others.
As an expert on the topic, Jeremy Goldstein wrote about the issue of whether the employees should go for knockout options or not and whether it is a favorable choice or not for the employees as well as the companies.
Jeremy Goldstein said that the stock options are good as long as the market is good and the company is doing well. Jeremy Goldstein stated that nothing about the future of the stocks could be predicted as the market can turn upside down overnight, and the employees would have to face an enormous loss that they might not be prepared for. It is, for this reason, many of the employees these days opt out of stock options and only wanted a fatter pay check. Learn more about Jeremy Goldstein: https://www.quora.com/profile/Jeremy-Goldstein-20 and https://www.slideshare.net/JeremyGoldstein14/
Jeremy Goldstein says that stock options are more or less like gambling because it can become worthless overnight and has the power to make you a millionaire and even billionaire in some cases.
For companies, however, providing stock options to the employees have some disadvantages as explained by Jeremy. He says that the tax burden of the enterprise increases drastically and the cost of maintaining records can eclipse the profits of giving out stock options.
Many companies also don’t want to give out their shares to the employees as they feel the stocks can be of tremendous value in the future, and that giving out better salary is a much better option.
Jeremy Goldstein is the partner at a reputed law firm he founded, Jeremy Goldstein & Associates LLC, a company that has become a go-to law firm for all kinds of matters related to finance and corporate law.