Category: Lawyers

Stock options have been used as a method of workers’ compensation for a long time. However, despite being one of the widely used methods of workers compensation, it is losing its position to other methods very fast. Some disadvantages are associated with this method that has made it a top target for managers.

 

Many corporations are considering stock options not good enough for business since they have disadvantages that can affect the growth of a business. Some of the corporations that have foregone the method have been giving the excuse of wanting to save more money as the only reason. However, this is not the case. Multiple problems can be associated with the move to eliminate them.

 

Despite workers being the target of this compensation method they have not been pleased about it in recent times. There is a lot about them that is keeping workers from accepting them as a proper means of compensation. The world economy is drastically changing. Some stocks are crashing overnight leaving investors with deep problems. These are the kind of things that many employees are wary about. You cannot be sure about the future of the stock options. It is a gamble that may blow all the investments you have. Some workers compare them to the free casino promotions that one get. There is nothing it will cost you, but it is just a gamble. You cannot plan your life with it. The current employees are sensitive to such compensation plans, and this has added to the challenges that have been facing the stock options as a means of workers compensation.

 

Jeremy Goldstein on EPS

 

Jeremy Goldstein advises business corporations on how to apply Earnings per Share as a means of offering incentives. EPS is an effective compensation plan if it is properly implemented. Jeremy Goldstein also offers advice on other performance-oriented methods of compensation.

 

EPS can have a huge impact on the growth of a business. It is one factor that shareholders will look at before deciding whether to buy or sell a stock. When EPS is incorporated in the payment structure of a business organization, it has been proven to be highly successful.

 

However, opponents of the EPS system think of it as one way that senior corporate officers can selfishly influence the performance of the business. The executives are the one who set the metrics to be achieved. They can adjust the metrics to favor a predetermined outcome.

 

About Jeremy Goldstein

 

Jeremy Goldstein is a reputable lawyer in New York. He is the founder of a boutique law firm in New York that deals with corporate compensation. Jeremy Goldstein has acquired a lot of knowledge from working in the industry. He has been working with various medium and top organizations for about 15 years now. Learn more: http://officialjeremygoldstein.com/

Jeremy Goldstein is partner and founder of the boutique law firm Jeremy L. Associates LLC, which is a highly respected law firm that advises corporate executives. Prior to starting his law firm, Jeremy Goldstein spent time working at another law firm in new York. Most corporate executives now only turn to Jeremy Goldstein, when they are in need of issues involving employee benefits. Jeremy Goldstein has amassed 15 years of experience and shows it.

 

Jeremy Goldstein has been very influential in many of the country’s top corporate transactions involving many top-tier companies such as Chevron, Verizon, AT&T, Merck and Bank One. Along with his legal work, Jeremy Goldstein serves on the board of many organizations including the non-profit Fountain House, which helps those with mental illness. Jeremy Goldstein is the chairman of Mergers and Acquisition Subcommittee of the American Bar Association Business Section. Jeremy Goldstein earned his J.D. from the New York University School of Law. He also earned his B.A. from Cornell University and a Master’s Degree from the University of Chicago.

 

Most major companies have completely stopped offering employees stock options. Some companies do it to save money, while others do it for more complex reasons. There have been a few issues that have convinced companies to stop.

 

Dropping of the stock value, makes it hard for employees to execute their options. Employees grow concerned with this type of compensation. Stock options end up burdening company accountants.

 

There are however, some benefits to stock options. This type of compensation is easily understood by employees. The options cause employees to work harder at making the company successful.

 

When it comes to options, Jeremy Goldstein suggests the knockout options. It has very similar characteristics as the regular stock options. However, when they fall below a set amount, employees will lose them. Knockout options are less stressful on company accountants and there is no risk of option overhang.

 

Companies that consider the possibility of knockout options, should wait at least a year after the current derivatives expire before offering replacements. If the company decides not to wait, their corporate quarterly statement may look negative.

 

Knockout options may not be a solution to every problem, but they do get rid of many of the major obstacles related to compensation based on stock. It is recommended though that executives of the company speak with auditors about the implications of providing knockout options. It will take time to see if knockout options are right for you. Learn more: https://www.facebook.com/jeremy.goldstein.12