Jeremy Goldstein on the Disadvantages of stock options as a compensation method
Application of stock options is one of the ways that employers compensate their employees. It is a way through which a company allows its employees to own a part of the firm as a way of showing them appreciation. It has been used as a way of compensation for a long time. Although it has worked, there are many challenges that it has brought in the business environment. Companies have been staying away from them recently after they proved to be an unreliable option that a company can apply. They have affected the financial position of companies, and as a result, they are no longer sustainable and cannot be used as a way of compensation. Besides the issue of affecting the financial status of a company, they have also been churned by employees. Employees no longer want them as a means of compensation. They better take home a bigger monthly salary than wait to benefit from the stock options.
Jeremy Goldstein, a lawyer in the United States with huge experience on matters of workers’ compensation has referred to this as one of the compensation methods that should be done away with. It is no longer good for a company and should be replaced by better alternatives that are available. Jeremy Goldstein who has drafted numerous workers’ compensation plans for companies believes that employees need to implement better compensation plans that will protect their businesses from losses and bad reputation when the company is not performing well.
Stock options are an accounting burden to many institutions because whether the company makes profits or losses, they must be accounted. They have also been a grave burden to the company especially when the company is not making profits. They create overhang of the shareholders’ investment. This not good for a business since shareholders are likely to withdraw their support for the business.
Jeremy Goldstein has worked with many business organizations such as the Goldman Sachs and Bank of America where he has experienced firsthand a tussle between workers compensation and the shares of long-term investors. Jeremy has seen what it takes for a business to fail or perform well depending on the approach it takes on matters of employee’s incentives. When a business engages in business plans that are ineffective, they end up losing the long-term investors while they offer incentives to the employees.
Jeremy Goldstein recommends that business owners should strike a balance between the employees and the investors to avoid poor performance of their businesses. Due to his experience, Jeremy offers advice to employers on the best incentives program to apply in their places of work.
Jeremy Goldstein is the best compensation lawyer in New York. Learn more: http://jlgassociates.com/