Jeremy Goldstein is one of the best business lawyers in New York. Corporations of all kinds come to him for advice on matters like executive compensation and corporate governance. His law firm, Jeremy L. Goldstein and Associates LLC, is the top advisory firm on the east coast.
Their clients consist primarily of CEOs, management teams, and compensation committees. Currently, Jeremy Goldstein spends a lot of his time advising corporations on employee benefits. A new trend in the corporate world has led to many corporations eliminating stock options as a benefit in favor of more preferred and easier benefits.
This recent trend is something that Jeremy Goldstein and others like him believe to be a mistake. No one is suggesting that every company offer stock options, but too many are giving stock options without taking everything into consideration. There’s more to stock options than companies are remembering.
The main reason so many companies are eliminating their stock options offered to employees is that the stock market, in general, is a place people no longer feel comfortable putting their money. Much of the negativity surrounding stock options come from stories about companies going under and their employees losing everything in the blink of an eye.
Without thinking about, these corporations have created a terrible trend that’s leaving many people out in the cold. Stock options come with their risk, yes, but so does every type of compensation method. None of them are perfect, but stock options come with advantages that other methods can’t offer.
Jeremy Goldstein believes that if companies remember the positivity that comes with stock options, they’ll be more inclined to start providing them again. The most obvious advantage to this type of compensation method is that it makes employees part of the company on a financial level.
If someone is financially invested in the company’s success, they can see their work directly affecting stock value. The more the company succeeds, the more the stock value goes up. When people know their work has that effect, they may work harder to ensure the company succeeds.
Another great advantage of stock options is it may become easier to offer than other forms of compensation. Honestly, stock options will never be as easy as offering higher salaries, but they may become easier than offering equities. Learn more: https://twitter.com/jeremy_gold1