Options are a compensation method that most employers avoid nowadays because of the limitations that it brings to a company. Jeremy Goldstein, who is a partner that works with Jeremy L. Goldstein & Associates LLC, explains to employers that apart from options, knockout options can help employers provide better compensation methods.
Jeremy Goldstein is a lawyer that provides services to different compensation committees that deal with how they pay their workers. He also helps administrators in an organization to work better and provide good governance to their companies.
Before he decided to found his own law firm, Jeremy Goldstein worked in various organizations including Rosen & Katz, Lipton and Watchez. He has also worked with various government bodies, as a lawyer, and as a chair of different committees that deal with compensation.
In the extract, he points out problems that organizations face when giving options to their staff. For instance, if their stock value goes below a certain amount, then those individuals would not enjoy any benefits that come with these options. However, these options are beneficial because they make staff members feel equal. Additionally, since most people depend on the stock value of the company they work for, they will work hard to ensure that company operates at its full potential at all times.
Jeremy Goldstein insists that companies should consider knockout options as a safer alternatives. They are effective because the organization will not have to worry about extra costs. These knockouts cut costs which would come in if they were using options alone.
Their difference in operation ensures that employees gain when the stock value remains between two set limits. In case the value goes beyond a certain limit, then it may not affect them in any way. Jeremy Goldstein also suggests that stockholders who have shares in a company may feel safer about their investment because the stock options protect them.