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Today, many of the world’s most powerful companies in the United States have begun straying away from providing stock options to their employees in favor of providing bonuses or salary increases. All signs point to monetary issues such as increased accounting expenses a being the major culprit for the change in protocol, but there is also a multitude of other factors, such as option overhang effecting stockholders. For companies that would like to continue the practice of providing staff members with stock options, it could be beneficial to include a knockout clause. By including a knockout clause with their stock options, the risk of option overhang for stockholders is significantly decreased due to the fact that the option becomes void if the value of the stock dips below a certain number to be determined by the company. Executive compensation figures are often lower when knockout options are included, which often looks good to stockholders.

Before choosing to found the law firm Jeremy L. Goldstein, and Associates, LLC, Jeremy Goldstein had been blazing a stellar career, beginning with a term with Wachtell, Lipton, Rosen, and Katz, that saw him become a major factor in some of the most noteworthy accounting transactions around the world. Mr. Goldstein has played a crucial role in transactions such the purchase of Goodrich by United Technologies Corporation, Duke Energy, and Progress Energy, as well as Verizon Wireless and Alltel Corporation. His boutique law firm is geared at providing sound advice to companies experiencing sensitive situations or transformative events regarding corporate governance. Today, Jeremy Goldstein is the chairman of the Mergers & Acquisition Subcommittee that belongs to the American Bar Association, and over the years, he has received a multitude of recognitions, including being named one of the top executive compensation lawyers in the United States by several prestigious organizations including The Legal 500. While he is actively involved in the daily operations of his firm, he is also a regular contributor to magazines and online platforms on information regarding corporate governance and legal compensation. Jeremy Goldstein received his Bachelor of the Arts Degree from Cornell University, where he graduated cum laude. Jeremy Goldstein later attended New York University, where he studied law, receiving his J.D., and The University of Chicago, where he received M.S.

 

To learn more, visit https://thereisnoconsensus.com/jeremy-goldstein-explains-knockout-options-help-employers/.

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