The use of stocks option to compensate employees has philosophical basis in the age of scientific revolution whereby it is used as a way of making employees own the company. Making employees own the company is a sure way of ensuring productivity because they recognize the need to increase output as this can be proportional to higher earnings from their shares. Nonetheless, there has been an increasing trend of corporations departing from this method of compensation due to various obstacles. The share market is a volatile one. Shares can rise or fall in value, and this has made many employees and companies deter from this method as it can be detrimental at the end. Options have also been rebuked for their considerable accounting burdens. Employees have also been very skeptical of the system in the place of real high salaries that are eliminated by these options.
Nonetheless, it is possible to continue this compensation method as the advantages outweigh the risk for the corporation and the employees as well. The employees effort and strive to always contribute the best for the company and the entrepreneurial spirit it cultivates on the side of the employees are merits that cannot be wished away. Corporations also feel at ease when working with a team that feels a sense of ownership.
Continuing with this method, however, require strategizing and coming up with an amalgam system that maximizes the benefits and cuts on the disadvantages as much as possible. This can be done by adopting a barrier system called the knockout. It operates by setting a cushioning of the kind of drop that the shares are allowed to go down, after which the options ownership is curtailed from the employees. To properly come up with such a system, corporations require the legal skills of experts in the field such as Jeremy Goldstein.
This attorney is renowned for helping corporations comes up with integrated channels of employees benefit. With over fifteen years of experience as a business lawyer, Jeremy Goldstein has been instrumental in significant business transactions. His legal firm Jeremy Goldstein and associate LLC has been providing top notch services on employee’s compensation systems as well as business transactions. Jeremy Goldstein has been instrumental in advising companies on corporate governance. The lawyers is an alma mater of New York university school of law where he graduated with a Juris Doctorate in law.
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