According to Jeremy Goldstein, many employers have lately stopped giving stock options as a benefit to their employees. There are three main reasons for this beyond saving money. The first reason is that the stock may drop so much that the employee can’t exercise the option.
Despite this, the company still needs to report the expense of giving the option plus it affects other stockholders in what is referred to negatively as option overhand.
Crunchbase reveals that Jeremy Goldstein also says that economic downturns can make the options of no value. Due to this offering stock options to employees is similar to handing them casino chips. Learn more about Jeremy Goldstein: https://www.avvo.com/attorneys/10019-ny-jeremy-goldstein-978103.html#client_reviews
Finally, he says that giving out options leads to accounting difficulties. It is better to pay a higher salary and avoid this as well as offering the employees something more valuable.
Despite these problems, there are still some advantages to giving out stock options. The main reason is that stock options are quite understandable to employees.
They also encourage employees to improve the company so that their options increase in value. The harder they work the more the value of the company will rise.
Jeremy Goldstein is an attorney in New York City. He has his own law firm, Jeremy L. Goldstein & Associates, LLC, that he established in June 2014.
Prior to this he worked for 14 years at the prestigious law firm Wachtell, Lipton, Rosen & Katz. He is a graduate of the New York University School of Law where he earned his law degree.
For almost 10 years Jeremy Goldstein has volunteered for Fountain House as their director. This non-profit is dedicated to helping people who have a mental illness. Jeremy Goldstein helps this mission by allocating resources in the most effective manner so that the greatest number of people are helped.