Jeremy Goldstein has been sharing his opinions on business and law for years. Now he has shared his thoughts behind stock options. He explains the pros and cons that companies should be aware of before they incorporate stock options into their business plan.
Jeremy Goldstein is a business lawyer who attended college at the University of Chicago, Cornell University, and the New York University School of Law. His education made it possible for him to become a partner at his own firm: Jeremy L. Goldstein & Associates. He has also been involved in several large corporate acquisition. Goldstein lended his knowledge during the Verizon and ALLTEL deal and the Duke Energy and Progress Energy deal.
Jeremy Goldstein is now seeing more and more companies deciding to end their stock option plans for employees. This change can be attributed to quite a few different reasons.
Goldstein says the most obvious reason that companies are cutting their employee stock options is simple: to cut costs. He explains that there are much more complicated reasons to end stock options as well.
Employees may be partially responsible for the decision. Goldstein explains that when a company isn’t constantly growing an employee may feel as if their stocks are worthless. Worse than that, if a company is going through a tough time, it can lower moral of the entire workforce. In summary, you shouldn’t offer stock options during tough times. Wait til your company is more successful to provide stock options to your workers.
Employers should explain the potential financial burdens to their workers. If a person isn’t careful, financial services associated with the involvement in the stock market can result in profit lose. If you don’t invest enough money into a company, the cost of financial services may outweigh the profit made from your investments.
The advantages of utilizing stock options outweigh the negatives by a long-shot. Stock options can motivate your entire workforce into being more productive. When an employee is personally invested in the company, they want the company to do better. They are no longer just working for an hourly wage, they are working to improve a company.
Providing cheaper stock options for employees is a great way to provide bonuses as well. If you were to give an employee a large bonus in cash, the tax burden for both the company and the employee would increase. With stock options, the employer doesn’t face harsher taxes. Learn more: https://thereisnoconsensus.com/jeremy-goldstein-explains-knockout-options-help-employers/