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Jeremy Goldstein, Knockout Options, The Safer Way to Invest

Jeremy Goldstein of Jeremy L. Goldstein and Associates offers some advice for employers. He’s recently offered a scholarly article regarding an employee stock option plan called “knockout options.” The advice is solid as it offers a plan that saves both the employer and employee money, time and headaches.


Since ESOP plans have been around, they’ve been a popular benefit to offer employees. In a perfect world, they’d make everyone happy. Since the value of the portfolio is dependent on the performance of the stock market, they can turn sour quickly. Knockout options fix this issue as they still give the benefit of retirement savings, however, they limit the risk involved significantly. Learn more:


With these options, the losses are reduced as prices are capped. Should the stocks drop below a certain point, they are sold to prevent further losses. The obvious benefit is that employees don’t have to worry so much about their financial future. The benefit to companies is that the employees tend to be much happier, and the accounting burden is reduced significantly.


Jeremy Goldstein has taken on many different corporate giants over the years. Telecommunications, banking, foods and many others are among the types of companies he’s represented. His educational background is strong. He has an Ivy League undergraduate education and a Juris Doctor from New York University. He’s contributed to the NYU Journal of Law and Harvard University in the business division. While Jeremy Goldstein isn’t busy working, he volunteers and offers his leadership guidance to charity. He’s on the board of directors for Fountain House, a charity helping the mentally ill, and children’s charities as well. He’s certainly a well-rounded attorney, you’ll most likely be hearing of in the future.

Jeremy Goldstein advice on how companies should maneuver Stock-based compensation

It has been a frequent trend by multiple corporations to stop providing stock options to its employees. Many of this companies do this to save money and reduces the overall expenses for its clients. However, some corporations do this for various complicated reasons. Below are some of the ideas and issues that are making companies curtail these benefits.


Unforeseen economic situations may result in the loosing of stock value. When this happens, the employees are unable to exercise their options. Even in the eventuality of this occurring, companies are still required to report the expenses associated with these stock options; this leads to the investors facing the risk of option overhang.




A lot of companies still find it economically viable to provide this compensation method. The main reason behind this is that the company’s employees easily understand stock options. Providing this possibilities to employees gives them something equivalent of value.




If a company wants to continue with the provision of stocks options to employees, the company needs to adopt an effective strategy and avoid excessive costs. The company should additionally take steps aimed at minimizing overhang together with the company’s ongoing expenses.


Some companies embrace the use of a barrier stock option referred to as knockout. These stock options and the conventional options are similar which is evident from the vesting requirements they have along with the time limits placed on them.




Companies opting to use knockout options should know that these options can’t be used to solve every problem. However, the options may be used by the corporations to banish some of the most significant challenges brought about by stock-based employee compensation. These companies should make an appointment with an auditor who will assess the viability of using stock options as a means of payment. Doing this is essential as the auditor will let the economic consequences of brought by using alternatives to compensate the company’s members of staff.


About Jeremy Goldstein


When companies require professional and legal advice regarding the employee’s benefits, the first person that comes your mind is Jeremy Goldstein. He is a lawyer having 15 years’ worth of experience when it comes to business law. Jeremy Goldstein started a law firm in New York; he managed this independently after working for smaller firms. Jeremy Goldstein has been involved in highly sophisticated transactions between companies like Verizon AT&T Chevron among others.


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