Knockout options may be the new solution for employers who are tired of the risky nature of stock options. Jeremy Goldstein gives you the scoop on how they may be a better choice.
First off the nature of stocks can be tricky. If they fall below a certain price they can be deemed worthless. They can be quite the hassle for the accounting department, and they can change like the wind, especially for the worst if the economy is not doing so well. There are also good sides to them too. They are relatively easy to understand when employees receive them. They work and are seem as a good compensation to employees. There is an incentive for employees to be productive for their company. If the company is doing well, the stocks will rise in price, thus in turn profiting employees.
Knockout options make a good choice for a number of reasons. They automatically get cancelled if they fall below a certain price, which in turn with hurt the company less. They will be less of a burden and reduce costs when it comes to accounting fees. Knockout options will also help stockholders so they don’t fave overhang threats.
Jeremy Goldstein is a executive compensation lawyer who is based in New York City. He attended three colleges to get a solid education. He first attended Cornell University where he received a Bachelor of Arts degree in Art History. Jeremy Goldstein then got his Master of Arts degree in Art History at the University of Chicago. Lastly, Jeremy Goldstein decided to study law at the New York University School of Law where he received his Juris Doctor in Law. Learn more: https://www.business.com/advice/member/p/jeremy-goldstein/
Mr. Goldstein is a partner and also founded Jeremy L. Goldstein & Associates LLC where he focuses on compensation issues for executives and such. He has worked for other firms including Wachtell, Lipton, Rosen & Katz.