It’s a miracle that anyone these days knows what an employee benefit is anymore. For the last decade, the corporate world has been slowly phasing stock options out of the picture in favor of more preferable benefits. Some corporations have stopped providing benefits altogether.
While whether to offer benefits isn’t really a big discussion, the discussion of whether to offer stock options is increasingly relevant. There are a lot of opinions about the subject out there, but very few sources have creditability. One expert offering his opinion is Jeremy Goldstein, a 15-year business lawyer in New York.
Jeremy Goldstein started his own firm a few years ago after working at Wachtell, Lipton, Rosen, and Katz for a number of years. He started working there after graduating college and made it to partner before leaving. Now, his firm handles some of New York’s biggest corporate transactions for clients such as Verizon, AT&T, Bank One, and Duke Energy.
As previously stated, he started working at Wachtell after college. His college years were filled with all sorts of honors and programs certificates. Jeremy Goldstein holds numerous degrees from New York University School of Law, the University of Chicago, and Cornell University.
In his opinion, corporations need to continue offering stock options as a benefit. He’s not saying that it’s the right choice for everyone, but too many corporations are eliminating stock options just because other compensation methods are easier. If companies want their employees more invested, stock options may be the way to go.
Jeremy Goldstein wants everyone to remember the advantages that come with stock options. Firstly, stock options provide an understandable level of equivalency to employees. Other benefits aren’t so easy to understand when compared to other employees, which allows for higher pay to certain employees for no work-related reason.
Secondly, stock options personally invested the company’s success. The more successful the company is, the higher the stock value rises. This allows employees to see their work directly affecting the company’s value. They may work harder to satisfy customers and develop innovative products if they know their stocks will rise because of their efforts.
The less obvious advantage is how the IRS affects compensation methods. As more corporations stop providing stock options, they choose to go with equities instead. Recent IRS rules have made equities a little tougher to provide. Learn more: http://officialjeremygoldstein.com/