Jeremy Goldstein is one of the best business lawyers in the world today. In his line of duty, he deals with corporations as an advisor on various matters related to workers compensation. In one of his recent writings, he explained why corporations should use stock option as a reliable means of workers compensation instead of the traditional stock options. He observed that many corporations have in the recent past been opting out of the stock options as a means of workers compensation. Many corporations have been facing problems using them while others seek to make more savings. Though Many companies will quote, savings as the reason they are opting out, the reasons are far much complex than that, as Jeremy Goldstein explains.
There are three main reasons why many corporations are opting out. One, corporations consider stock options an accounting burden that makes their financial books too complex. Secondly, the many employees are opting out of stock options because they do not consider them as a secure way of business compensation. They are wary that stock options are likely to lose value if the company does not perform well, hence putting their financial status in problems. Stock options allow employees to own a certain share of the corporation. With employees wary of their viability, many are reverting to salaries instead. Thirdly, Jeremy Goldstein believes that many corporations are having problems explaining to their employees’ implications of low rate stock options. If the stock options fall too low, they are likely to interfere with the shareholders’ stake, an occurrence known as an overhang.
Jeremy Goldstein has over 14 years of experience acting as a business lawyer. His law firm is located in New York. He has overseen major transactions of big corporations that included: Verizon, Duke Energy, and AT&T. Jeremy Goldstein is also a mentor to many startup entrepreneurs.