Jeremy Goldstein and the Knockout Option

Several employers deciding to stop providing their employees with stock options. Though it saves the employers money, three major issues are causing the employees to miss out on benefits.


The first problem is the decline of stock value. While businesses need to report expenses, stockholders face risks of option overhang. The second problem is that employers have grown worried about the idea of giving employees stock options because of the unpredictability of the economy. The third problem is that stock options create a burden for people using them.


There are advantages, however. Stock options are easy for employees to learn to use. Stock options rising due to company success encourages employees to work harder.


Employers can develop a strategy known as a “knockout“. If a company’s stock declines, a knockout can reduce accounting costs. Non-employee investors can also avoid overhand and lower executive compensation and lets companies look over profits easier. While knockout strategy doesn’t eliminate all problems, it deals with a lot of problems in stock options.


People like Jeremy Goldstein are helping employees understanding benefits. He has over fifteen years of experience as a business lawyer and has an independently-run law firm Jeremy L. Goldstein & Associates in New York. Jeremy Goldstein is dedicated to helping compensation committees, CEOs, management groups, and corporations. Before beginning his own firm, he was a partner for Wachtell, Lipton, Rosen & Katz.


Jeremy Goldstein received his J.D. from New York University School of Law, a Masters of Science from the University of Chicago and a bachelor’s cum laude from Cornell University.


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