Stock options as a form of compensation for employee is declining. Why is this? The reasons may be more complicated in nature that just the fact that employers save money. When the economy fluctuates, so does the stock market. If the economy is not doing well, then stocks may dip drastically making them them worthless and impossible for employees to use them. Also stockholders could face overhang, preventing them from selling the stock. The company can also expect to shell out more money if the cost from the accounting department is more expensive than the stocks themselves. On the upside stocks are pretty easy to understand making it a lot simpler for employees. They will also be more invested in the success of the company, because their stocks will rise when the company is doing better.
There may be a solution for employers when it comes to providing stocks for their employees and they are called knockout options. They are like regular stocks but have some differences. First off these options can be canceled by employers if the price of the options are low for an extended period of time. Also, they will automatically expire when they drop below a certain price which will not making it an unnecessary accounting cost. These knockout options are better for stockholders for two reasons. First they will face less overhang threats and will show more accurate earnings for the company which looks better to stockholders. Learn more: http://officialjeremygoldstein.com/
It may be interesting to find out that Jeremy Goldstein is not only a well known lawyer, but it educated when it comes to art history. He is a partner at Jeremy L. Goldstein & Associates LLC. He received a Juris Doctor in Law at the New York University School of Law, but previously studied art. Jeremy Goldstein went to Cornell University where he got a Bachelor of Arts in Art History. He then got his Master of Arts in Art History at the University of Chicago in 1996.
Jeremy Goldstein has previously worked at other law firms including at Wachtell, Lipton, Rosen & Katz as a partner for 14 years and at Shearman & Sterling LLP as an associate. Jeremy has also worked with huge corporations such as Duke Energy, Verizon Wireless, Goldman Sachs, Chevron Texaco Corporation, and many more. Jeremy Goldstein sits on a number of boards including the board of directors for Fountain House. They are a charity that help with the recovery of people with mental illness.