Jeremy Goldstein’s views on the knockout options

In the past years, many companies and their employees had adapted to the stock options form of compensation. However, as time goes by and competition continues to increase as well as the constant economic recession that leads to changes in the value of the stock, may have become wary of this method.


Why may are against the stock option method of compensation

Many employees do not care to be awarded stock options since they consider them only valuable to the investors and executives of the companies they work in. There is also the fear that when the share value of these stocks decreases, the options will be of no value much like the casino chips. Employees would rather be compensated in other traditional ways like wages, insurance coverage of equities.


There is also the issue that many companies fear that this form of compensation results in tasking accounting situations. This results in more expensive relevant costs as compared to the financial benefits. Most corporations are doing away with the method to save money.


Benefits of stock options

The upside to offering stock options to employees is that it encourages them to work harder towards improving or maintaining the standards and stock value for them to keep earning from the options hence growing the company’s revenue.


Knockout Options

Experts like Jeremy Goldstein have come up with a new way for companies to keep handing the options without the disadvantages. The Knockout options are the kind of options that can be done away with over time and when the stock value is low. The terms are that these options have an expiry date and can be done away with if the value goes below 75 dollars per share over a certain amount of time.


Jeremy Goldstein

Jeremy is a US lawyer and legal advisor with twenty years of experience. His expertise lies in matters of mergers and acquisition as well as laws of compensation. He has played a crucial part in transactions of many companies like the acquisition of Duke Energy among many others.


The New York University JD holder is the founder and partner at the Jeremy L Goldstein and associates law firm that offers advisory services on matters of compensation. He is also a chair of the mergers and acquisitions subcommittee and the Fountain House Charity Foundation. Learn more:

Jeremy Goldstein talks about stock options and other employees’ incentives

Stock options are a means of workers compensation. Many business organizations have used it, and it seems like its good days are gone. Corporations are coming up with new methods that they consider more effective than the stock options. However, even as the world moves away from the stock options and adopting new methods, there are still some advantages about the stock options that we can list. These are the advantages that have made them popular up to now.


Although there are problems associated with stock options, there is a reason why some employees still prefer them for compensation. Benefits such as low-cost insurance benefits keep workers glued to them. Some benefits cannot be found in other forms of compensation. It is better to take an offer on low-cost insurance for yourselves and the family than to take an increased salary. There is an advantage of the previous over the latter. Highest paid workers tend to take the stock options instead of an increased salary. They seem to realize some of the benefits associated with stock options and this goes to show that all is not lost for this compensation method. Stock options normally are constant for all employees in a company. No one has an advantage over the others.


EPS in business growth


EPS means “Earnings per Share.” It is one of the performance-based incentives payment methods. The companies executives are the ones who put the metrics that will determine the level of performance required. EPS is one of the best methods for a company to make huge growth over a short time. They normally influence buyers and sellers of shares in a company. If they are well implemented, they can attract investors into a company. EPS also ensures that employees only get what they deserved depending on their input in the company.


However, critics of this incentive methods discourage business from applying it because it does not offer any sustainable growth over a long period. It is a temporary way of improving business and not for a long term. So, investors looking to create long term growth should avoid them completely. Learn more:


About Jeremey Goldstein


Jeremy Goldstein is a lawyer who has specialized in business matters. He has been serving in the corporate sector for over 15 years. His main role has been to advice corporate executives on the best compensation methods that they should apply.


Jeremy Goldstein has co-founded a law firm called Jeremy L. Goldstein & Associates. The law firm has offices in New York.


Jeremy Goldstein is also involved in other areas of business such as mergers and acquisitions. In his career, he has worked with big organizations such as Verizon, Bank of America and AT&T.