Just like other legal councils that specialize in one area of the law, Jeremy Goldstein is well versed in compensation legal issues that help to support big businesses and their employee incentive programs. Therefore, whenever a company’s compensation area is thinking about updating or completely changing their compensation plans, they may turn to attorneys like Jeremy Goldstein for the advice that they need to make informed decisions. In fact, today, there is one common area in particular that companies and corporations are presently focused on, and that is changing significant parts of the employee incentive plans. So, based on the recommendations that Jeremy Goldstein and his recommendations, the company may be considering making huge changes on their stock option programs.
According to the most recent initiatives in the area of compensation, the stock options are being nixed and the Knockout options are taking center stage as a possible replacement. Typically, there are 2 primary advantages to why many companies are making this switch, and they are listed in the section provided to you below.
Advantages #1 – Minimizes Value of Company Stocks Dropping in Price
Even though the stock market makes great investments for those who like to gain more money on top of their annual company salaries, there is at least one downside to companies offering these kinds of incentives to their employees. One of the most common is the risks that people are taking when they are dealing with stocks that are considered to be highly volatile. Also, just like any other types of stocks, an employee’s shares of stocks can be risky too. Especially, because of the economic problems that exist today. Therefore, company stocks can be a very good deal in the long run or they may not hold the initial value that employee sees in the beginning. Learn more: http://jeremy-goldstein.wikidot.com/
With this in mind, today’s companies can begin to minimize the risks in stock options by changing to Knockout options instead. According to information posted by Jeremy Goldstein, the Knockout option is considered to be a better deal, specifically when it is related to the up and down risks that are embedded in stock option incentives.
Advantages #2 – Company Saves Money
In addition to the company reducing risk by switching to the Knockout options, the company will have a chance to save money too. Because the competition is stiff and every company is trying to increase their profits, one of the proposed ways to accomplish their goals and objectives is to offer the Knockout option instead of the traditional stock option incentive programs. This alternative is considered to be a viable option to eliminating stock options without having a plan to replace them with other incentives for the employee.