Jeremy Goldstein is the founder of Jeremy L. Goldstein and Associates in 2014. He specializes in compensation law for highly paid executives. Before he founded his own firm he was at the center of major transactions through the last ten years.
Jeremy Goldstein graduated from the New York School of Law with a J.D. and earned his M.S. at the University of Chicago. He is an expert in compensation law and helps people understand legal terminology and what it means. In this case, Jeremy Goldstein explains what knockout options are and what they mean to employers and their employees.
In recent years companies have used knockout options in order to save money. Knockout options allow employees to buy stock in the company at a fixed price. Jeremy Goldstein tells us why companies have shied from this practice.
The most important reason is that the price of the stock could drop dramatically. An employee can buy a stock at a value of one hundred dollars per share. If the market takes a downturn and the value drops below fifty dollars, then employees will be knocked out and their stock will be worthless to them if the price stays low.
Jeremy Goldstein also points out that there are advantages to companies giving such options to their workers. One big reason for employers to offer such options is that it lessens the tax burden for the company involved. The IRS rules are much less complex for the company instead of offering other comprehensive packages to their employees. This can save a great deal of money in the long term.
Jeremy Goldstein’s expertise in compensation law helps ordinary people understand the complex world of high-level compensation packages. This is a simple guide to compensation for ordinary people. This is why money matters are important.
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