Jeremy Goldstein Explains the Value of Employee Stock Options

Jeremy Goldstein notes that stock options for employees have lost ground with a number of companies. Usually, companies award options to attract and retain top talent. Some companies suspended them to save money. However, there are complex reasons that need examining:

  • A stock’s value can significantly drop, which can make it impossible for an individual to exercise their option. As such, businesses would still need to report their expenses even though facing the risk of a stock option overhang.
  • Employees no longer have the same enthusiasm toward options. They are smart, and they know that a downturn in the economy can eliminate their stock’s value.
  •  For the employer, awarding stock options may accrue accounting challenges. As such, the cost may outweigh the benefits.

While there is some pushback on stock options, Jeremy Goldstein also provides several advantages, form the employer’s point of view, to issuing stock options. Some employers prefer stock options to a wage boost or more insurance coverage. Stock options are also relatively easy for staff members to understand.

The fact also remains that options boost employee earnings only when the stock’s value rises. Jeremy Goldstein believes this can be an incentive for employees to place focus on their company’s success.

Jeremy Goldstein and his wife and four children live in East Asheville. His wife, Heather, is an attorney with the Van Winkle Law Firm. She also stays active in community projects.

Jeremy Goldstein received his degree in Public Policy in 1994 from Duke University. Goldstein runs a boutique law firm, Jeremy L. Goldstein & Associates, that specializes in compensation advisement.

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