Over the past few years, a lot of companies have decided to give employees the benefit of having stock options. One of the reasons for this was to save money, but in other instances, the reasons may be more complicated than just increasing revenue. Some of them include:
- If the company’s stock drops at a staggering amount, it would be difficult for employees to have options.
- Some employees are more cautious of this type of payment. They are aware of the economic changes that may affect stock options which can pose a risk to their income rather than having a stable pay.
- Stocks are considered to be difficult in the accounting process, and others are thinking twice about its costs over the advantages. A lot of employees would prefer raised salaries over having stocks in the company.
However, Jeremy Goldstein discusses that there are actually great benefits for companies to offer stock options to their employees.
Mr. Jeremy Goldstein talked about how this type of compensation can be ideal to create an environment of increased salaries, insurance coverage, and equities. He further discussed that it is simple for team members to comprehend stock options, and can be something that provides equal value to all employees, no matter what position they are.
Stock options help improve personal earnings if the company’s share value increases. This, in turn, will motivate employees to contribute to the company’s success. Since employees own stock options for the company, they would be encouraged to work harder to satisfy clients, get profitable leads, or create exceptional services as they are aware that their investment is at stake with the quality of work they provide.
About Jeremy Goldstein
Jeremy Goldstein is the owner and founder of Jeremy L. Goldstein & Associates LLC. His company is a boutique law firm which gives advice to companies regarding compensation issues, CEO roles, management, corporation, executive compensation and governance matters. They help organizations navigate through the context of events and sensitive employer-to-employee or company-to-client affairs.
Prior to founding his own firm, Mr. Goldstein was a partner at the law firm Wachtell, Lipton, Rosen & Katz. Before starting his own law firm, Jeremy Goldstein became a partner for Wachtell, Lipton, Rosen & Katz. His work was known because of his involvement in several corporate affairs. These include the acquisition of Goodrich done by United Technologies, Duke Energy-Progress Energy, Sanofi-Aventis acquiring Genzyme, Verizon acquiring ALLTEL corporation and many others. Learn more: http://clsbluesky.law.columbia.edu/2015/09/10/goldstein-and-associates-discuss-short-termism-performance-goals-and-executive-compensation