Businessman Jeremey Goldstein is a legal expert working at the boutique law firm of Jeremy L. Goldstein & Associates LLC. Jeremey Goldstein has had many years of experience in the field of specialized advisory and has worked with individuals such as chief executives, managers, teams, companies, and so on.
Lately, employers are thinking through the method of compensating employees through stock options as additional wages. There is a number of reasons for that decision. Some do it to save the company some money, but there are many other reasons as to the changes. Jeremey Goldstein examines what makes employers take the decision.
First of all. Employees can run the risk of having their options diminish if the stock value falls considerably. Companies are bound by law to report their associated spendings, which may impact stock price and cause option overhang for stockholders.
The arduous accounting work that that kind of compensation creates has also been a factor for some companies. Staff members often prefer to receive a higher payment rather than the stock option as an additional wage, and that makes employers rethink the method additionally.
At the same time, Jeremey Goldstein also points out the benefits of stock options. One of them is that each employee can have more success with stock options if the company’s stock shares rise. That provides the employees with a strong incentive to work harder and to achieve better results on a more consistent basis.
Stock options are rather easy to understand even if the person is not involved in trading. The advantages that stock options pose for the business are considerable and should not be ignored, according to Jeremey Goldstein.
He also shares what businesses could do in order to enjoy such benefit. The ‘Knockout” strategy is a very popular and effective one in the matter. It eliminates a stock option if its value falls under a certain tier. That will prompt the employees to work harder to maintain the value thus enabling the company also to enjoy higher profit in stock options which will also benefit the employees in an advantageous circle.
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