According to Jeremy Goldstein, corporations have stopped using company stock as an employee benefit. With the risks and labor associated with this method of compensation, many companies refuse to pursue it. Still, stock compensation has advantages. Company stock is often preferable to other compensations due to its simplicity and the fact that it provides a uniform advantage to everyone. Stocks also motivate employees to prioritize the company’s success.
A “Knockout” strategy can help obtain these benefits without excessive cost. When a knockout barrier is applied to a stock it functions as normal unless the value drops below a predetermined point and remains there for at least one week. This reduces accounting costs, lowers top management’s compensation figures (which appeals to shareholders) and gives the employees incentive to support the corporation.
Attorney Jeremy Goldstein is a seasoned business lawyer with over 15 years of experience in the field. Jeremy Goldstein was a partner at the law firm of Wachtell, Lipton, Rosen & Katz for 14 years where he specialized in executive compensation and mergers and acquisitions. He has also been involved in many of the major business transactions of the past ten years, including involvement with Verizon, United Technologies, AT&T, and Bank of America. Jeremy Goldstein is also serving as the chair of the Mergers and Acquisitions subcommittee through the American Bar Association.
In June of 2014, Goldstein founded Jeremy Goldstein & Associates, LLC, an independently established law firm in New York. His firm is dedicated to advising CEO’s, management, and committees regarding executive compensation. Goldstein & Associates also deals with matters such as transformative corporate events. Jeremy Goldstein attended New York University School of Law, the University of Chicago, and Cornell University, achieving a J.D., an M.S., and a B.A. cum laude respectively.
To learn more, visit http://jlgassociates.com/.