Advising CEO, management teams and anyone else who want to know about knockout options is one only one of the things that Jeremy Goldstein is responsible for doing today. With his own law firm, he has the skills, experience and expertise to explain what companies can do to create and implement their own successful compensation plans for their employees. As of late, he is also currently concentrating on providing information online about the benefits of knockout options and why today’s companies can benefit greatly from changing their compensation strategies. Simply put, today’s company are changing a long standing traditional trend that companies all over the U.S. has offered in the past and it is changing to a new alternative called knockout stocks vs stock options.
Even though the traditional stock options have proven to be a good deal for those companies who wanted to retain their best talent and recruit the best coming in, some companies are now seeing a great need to make a transition from offering stock options to knockout options. While knockout options do relate to compensating employees with stock from the company, the concept behind it is quite different in administration and the amount that employees will have access to on top of the employee regular salary. It is for this reason many companies are gearing up to make this switch. For example, the most notable reason is it benefits the company financially to implement changes in their compensation programs. Having said that, here are 3 benefits that employers can expect if they are a transition from stock options to knockout options.
Easier to Understand and Explain the Program to Employees
According to Jeremy Goldstein, the new program is easier for employees to understand since it is a relatively simple concept. This is especially true when it comes to establishing who will get what. For instance, this type of compensation is designed to provide an added value that is the exact same or equivalent for everyone who participates. Jeremey Goldstein also says that it encourages employees to work harder for the overall success of their company. Specifically, because the work that they perform will boost the personal earnings of each employee when they make bigger profits.
Jeremy Goldstein and More confidence in the Company Compensation
In addition to the knockout options motivating employees to contribute more to the success of their company, Jeremy Goldstein also addresses the fact that there is also increase in confidence. This is because the company’s stock prices are based on a wide range of different factors. So, if the stock is taking a big dive and does not do well, it can affect the value of the stock that people hold. So, the older stock option programs are considered to be more volatile. Learn more: http://clsbluesky.law.columbia.edu/2015/09/10/goldstein-and-associates-discuss-short-termism-performance-goals-and-executive-compensation/