Jeremy Goldstein: Stocks vs. Other Benefits

Over the years, more people have gotten to know about employee benefits. Before, only a handful of people really understood what it meant to have the right kind of employee benefits. For so long, corporations just offered stock options because that was the thing to do.

As more people look into benefits, a lot of corporations have stopped providing stock options. The first thing that comes to mind is that they’re doing this for money-based reasons, which is true for some of them. Mostly, the reasons are more complex than just finances.
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Of all the many reasons there are, three are most prevalent. First, there’s a concern that the value will fall significantly in a short time period. If the value drops too much, employees can no longer exercise that option. Even after the stock is no longer useful, they’re still at risk of option overhang.

For that reason, people don’t trust stock options that much, which is the second reason corporations are moving on to other types of benefits. At any given moment, the stock’s value could be completely worthless. Instead of seeing stock options as cash, they seem more like cheap casino token.

For years, companies relied on stock options for a reason. There’s a group of business experts trying to convince major corporations to go back to offering stock options. Stock options have a form of equal value for all employees that other benefits can’t offer. While higher salaries seem easier, they might not be.

Overall, other forms have their problems as well. The question then becomes: which benefit has the most upside with the fewest risks? According to Jeremy Goldstein, the answer is stock options. With new rules from the IRS and personal benefits, stock options have no competition.

The power of an attorney’s words can travel heavily. This is understood by no one better than Jeremy Goldstein. Goldstein is the founder of Jeremy L. Goldstein and Associates, the top corporate advisory law firm in New York. Goldstein has 15-plus years of experience that’s unmatched in his profession.

He’s been involved in some of the most memorable transactions in the business world. He’s worked with Verizon, Chevron, AT&T, Duke Energy, and Bank One on some of their biggest transactions. He’s a foremost expert with it comes to executive compensation and corporate governance. He’s even given lectures on such matters at conferences all over the country.

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