Jeremy Goldstein: The voice behind knockout options

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