Recently, majority of large corporations have decided to stop giving stock options to their employees. Some of them do this as a result of monetary reasons while some of them have more complex reasons for doing so. These companies have been convinced not to offer these stock options by three main issues. The first reason is the dropping of the stock value. Employees have small chances of exercising their options in case the stock value goes down. The company however still has to report any related expenses. Due to this, the stakeholders may face the overhang options. Jeremy Goldstein who is an experienced attorney on business law gave his insights about stock options.
Majority of employees do not also trust this compensation method since they understand that an economic downturn can render the option benefits worthless. In their view, the employees see the benefits as casino tokes and not cash. According to Jeremy Goldstein, stock options serve to only bring the accounting burden up. Due to this, the resultant costs may make any financial benefits like stock options worthless. Moreover, majority of employees believe that they may only benefit a lot if they were given a higher salary that just the stock option benefits. Jeremy Goldstein however states that stock options are still better when compared to insurance cover, equities or even increased wages.
Jeremy Goldstein has more than 15 years worth of experience as a licensed attorney. He now operates a law firm which is based in New York. He has in the past worked as a partner in another law firm where he served for several years. Jeremy Goldstein is known as a very reliable and efficient attorney whose specialty is in the business law. He has worked for some of the top companies in the United States such as Energy, AT & T, Verizon, Chevron and Merck.