When it comes to employee benefits, most corporations have stopped offering stock options. For whatever reason, people forgot the many advantages to having stock in the company they work at. The main reason seems to be people’s lack of faith in stable stock value.
Of course, stocks go up and down all the time. Historically, people didn’t make rash decisions because one thing went wrong. Today, society is very fear-based. People tend to read something online and assume the worst. This created a business world where people don’t want their money out of their control.
The truth is that stock options actually put people in control of the company. Because they own part of the company, their actions directly affect the value of their stocks. When people understand they can contribute the value of their own stocks, they may work harder to make the company successful.
An incentive like that, corporations still aren’t sure about offering stock options. Again, there’s the fear of spending too much time and money on something that may not be worth in the end. Jeremy Goldstein, an experienced business lawyer, recommends corporations look into “knockout” stock options.
Knockout options come with a lot of benefits that conventional stock options don’t have. For a start, knockout options fade if the value drops too low for too long. Conventional options create overhang, but knockout options can be canceled at no cost if the value stays low. It prevents people from canceling too soon because of one bad day.
That doesn’t mean that knockout options are perfect. By no means do knockout options solve everyone’s problem. That’s why it’s important that every corporation talks with their lawyers and auditors before making any decisions. Learn more: https://www.facebook.com/jeremy.goldstein.12
The sound advice of Jeremy Goldstein is something a lot of corporations pay to hear. He’s one of the best compensation and governance lawyer in the corporate world. He’s been called such by numerous legal publications like Chambers USA Guide to America’s Leading Lawyers for Business and The Legal 500.
His law firm handles some of the biggest deals in New York. Jeremy Goldstein played major roles in transactions involving Verizon, AT&T, Duke Energy, and Merck. Honestly, he gained his 15 years of experience by working on every high-profile deal his firm’s handled.