No matter how well the markets are performing, people increasingly lose faith in stocks. It’s not that people don’t understand the pros and cons of investing in stocks; they just don’t trust the people in charge of overseeing that their investments are protected. In other words, there’s too much corruption.
One group that usually always depends on healthy stock options is corporations. In the past, corporations always offered stock options to their employees. Recently, many have stopped offering stocks in favor of less tricky options. While every corporation has its own reasons for ditching stock options, whether they should is the question.
One of the biggest reasons for any company to stop providing stock options is that their employees would rather have higher salaries. Most people think the economy’s repeated downward spirals are too risky to be holding their future. At any point, the market could drop and render their stocks worthless.
As more companies switch to other compensation methods, there’s a group of people fighting to convince corporations to continue offering stock options. One of the people leading that group is Jeremy Goldstein, an expert executive compensation and corporate governance attorney. He believes that there are more benefits to stock options than downfalls.
While it’s tempting to offer additional wages, equities, or more insurance coverage, stocks are easier to understand overall. The other option might become confusing when offered to employees across multiple ranks and positions. Stock options offer a type of equivalent value.
Of course, cost and time are increasingly important. When offering other types of options, things might become too much. Stock options have a lot of paperwork too, but it’s easier to understand and handle. Certain IRS rules make other options more difficult than traditional stock options.
Jeremy Goldstein is a man who knows what he’s talking about. He’s worked corporate advisor and business lawyer for 15 years. He’s become many corporations’ go-to guy when it comes to employee benefits. Since working with companies like Verizon, Chevron, AT&T, and many others, he’s earned quite the reputation for being a foremost executive compensation expert. Learn more: http://www.bizjournals.com/newyork/potmsearch/detail/submission/6423046
Throughout his career, he’s sharpened his skills by learning from others. After leaving Wachtell, Lipton, Rosen, and Katz, he opened his own boutique law firm, Jeremy L. Goldstein and Associates. Now, he spends most of his time working with some of the most prominent compensation committees, CEOs, management teams, and corporations.