Owning stock in a company you work for is often seen as a smart thing to do. In recent times however, more and more companies are choosing to stop providing such options to their employees. Financial expert Jeremy Goldstein recently provided insight into both the advantages and disadvantages of stock option. Goldstein also offers up a number of possible solutions to fix the system for everyone.
Goldstein lists several reasons companies want to do away with stock options. When making employees shareholders, stock value may drop greatly. This can make near impossible for employees gain anything from company stocks. More and more employees have become aware of the stock method in turn making them less valuable. In addition to these reasons, costs involved often outweigh the financial advantages.
Goldstein does note some positives when looking at stocks. This type of compensation is still quite preferred to additional wages or insurance. Furthermore when employees purchase employee stocks it encourages them to prioritize the success of their company. After listing many of the advantages, Goldstein also list some possible solutions for this challenging situation. He believes the best option is for companies to embrace a a concept known as a “knockout.” This particular option has the same time barriers as their conventional options but are employee friendly, allowing them to lose the investment if the share value falls to a certain number.
An expert in his field, John Goldstein has been making his presence known for quite some time. A partner at Jeremy L. Goldstein& Associates LLC, Goldstein has been dedicated to advising clients for many years. His resume includes working with big time companies which include AT&T Wireless Services, J.P.Morgan Chase & Co., Goodrich by United Technologies and many more. Goldstein holds a J.D. from New York University School of Law. He has also studied the University of Chicago and at Cornell University where he earned a B.A. cum laude.
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