Jeremy Goldstein provides expert legal advice concerning employee benefits. He has been practicing business law for fifteen years. The experience he gained as a partner in a New York law firm enabled him to establish his own law firm. His expertise has played an important part in numerous major transactions involving prominent companies such as Bank One, AT&T and Chevron. He has also been a participant in many of the most important corporate transactions occurring over the last ten years.
Jeremy Goldstein serves the Fountain House and a prestigious law journal. The Fountain House is a nonprofit he strongly supports. His law firm specializes in providing advice for numerous parties including CEO’s compensation committees, and corporations. His knowledge and skill are highly valued within his field. He has provided excellent advice regarding the numerous ways knockout options can provide help for employers.
Jeremy Goldstein recommends stock options over equities, increased wages and improving insurance coverage. These benefits are easily understood and provide employees with value. The personal earnings only increase when the value of the corporation increases so employees want the company to succeed. Due to the rules of the IRS it is more difficult to provide equities to employees. Although tax burdens increase with equities they do not with stock options.
The knockout option should be considered according to Jeremy Goldstein. The vesting requirements and time limits are standard but if they decrease past a certain point they are lost by the employees. These issues can be resolved if the employer cancels the options when the value of the share is too low. This lowers the accounting costs despite the volatility. The worries regarding the ownership shares decreasing are significantly reduced. A knockout clause can additionally reduce the compensation figures for the executives on the annual documentation for disclosure. The result is a more accurate reflection of earnings on the yearly proxy. This looks good to the shareholders.
This solution provides a strong incentive for the employees to ensure the stock value does not decrease. When the prices of the shares rise the employees know their earnings will increase. Jeremy Goldstein warns that not every problem will be solved by knockout options. They will eliminate a lot of the major obstacles associated with compensation based on stocks. It is critical the officials of the company open communications with auditors regarding the possible ramifications in relation to the employees of the company. Learn more: https://www.slideshare.net/JeremyGoldstein14/aci-compensation-committee-presentation-2016