Jeremy Goldstein Steps in the Ring with Knockout Options

The idea of corporations offering stock options to employees is becoming less popular. The fear of an economic downturn weakening stock options might make an employee skittish when considering incentives. Why would an employee want to gamble when there’s a more tangible option like a pay increase? Jeremy Goldstein has shared his opinions on the matter.


The simple answer is employees can earn more money with stock options as long as the company is succeeding. Companies benefit more from having their employees invested in the company, and the employees benefit by watching their incentives grow. To reduce risk of devaluing the stock in the event of a downturn, corporations can use what’s known as a “knockout” option.


A knockout option is a safeguard when stocks are given as incentives. Jeremy Goldstein explains that when a stock’s value falls a certain percent below the original value at the time it was given, the stocks are “knocked out” as an option for employees. This helps secure the desire for employees to see their company grow. Both employees and the corporation benefit, as well as non employee share holders. Learn more:


Jeremy Goldstein is a partner at Jeremy L. Goldstein & Associates LLC, where they offer professional advice on matters of executive compensation, to the effective governance of corporations. Jeremy Goldstein’s expertise in business law has been notably involved in over fifteen corporate acquisitions, from the acquisition of Goodrich by United Technologies, to the Phillips Petroleum Company and Conoco Inc acquisition.


Apart from his current position, Jeremy Goldstein also shares his views on corporate governance and composition to those wise enough to listen. Jeremy Goldstein has demonstrated time after time that his opinions matter. Corporations should heed his advise on knockout options, there is a lot to gain.

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