Jeremy Goldstein is a business lawyer and currently works as a partner at his own firm, Jeremy L. Goldstein & Associates. He is the chair of a subcommittee at the American Bar Association and has worked on some of the biggest mergers in recent years. Goldstein earned his degrees from the New York University School of Law, the University of Chicago and Cornell University.
With his expertise on the subject of mergers & acquisitions he has assisted in many large transactions. He was a part of the Dow Chemical Company and Rohm and Hass Company deal as well as the Verizon and ALLTEL deal.
He is also an author who shares his opinions on business law and finances. In one of his recent publications he shared his thoughts on stock options and knock-out plans.
Despite the recent trend for companies to end their offering of stock options, Goldstein argues that it is still beneficial to offer stock options to employees. That is, if a few criteria are first met.
Said company must be sure that their company will experience growth after initiating stock option plans. They must also be able to work with employees in managing their stocks and coming up with plans. If an employee purchases only a few stocks and requires someone else to handle his stock portfolio for him, he may find himself losing money due to service fees.
If a company that offers stock options is seeing stable, solid growth, it could benefit from offering stock options to employees. An employee that is optimistically involved in the company will work harder to see continued growth. An employee that doesn’t have this relationship with the company will not work as hard.
A solution for a company that is weary about stock options is knock-outs. Knock-outs are a type of stock option that tops off the employees gain from their stocks. These stocks have a maximum selling point that limits the potential profit for the employee, but it also provides the employee with a plan. They know when to get out. Learn more: https://www.quora.com/profile/Jeremy-Goldstein-20