The best companies in the world maximize their valuation by moving their assets around in order to make the company look as attractive as possible.
Jeremy Goldstein, a 15 year business lawyer from New York City, has a great way for companies to appear as attractive as possible for investors and stockholders.
Stock options as a form of employee compensation can make a company look as desirable as possible, according to Jeremy Goldstein.
The stock option in lieu of additional income can make employee salaries look very manageable on paper. The stock option is also a much less expensive way to compensate employees over equity due to tax burden.
The stock option also helps employees work a little bit harder. When compensation literally depends on the value of the company, an employee is much more likely to work hard for the benefit of the company. But there is one drawback to the stock option that companies must be aware of, according to Jeremy Goldstein.
When a company’s value drops below a specific point, it becomes very difficult to pay out employee stock options. Learn more about Jeremy Goldstein: http://jeremy-goldstein.wikidot.com/ and https://about.me/jeremy.goldstein
This is called a hangover. Investors and stockholders are not very pleased with the prospect of a hangover. Jeremy Goldstein recommends a knockout stock option to eliminate the risk of hangover.
The knockout stock option removes an employee’s stock option compensation if the value of the company drops below a certain valuation for more than a week. This gives added incentive to the employee to work hard to keep the valuation above that threshold.
Jeremy Goldstein has been practicing law for more than 15 years and has set up his own boutique law firm in New York City called Jeremy L. Goldstein and Associates LLC.
He has advised some of the largest companies in the world on employee benefits packages and has been a part of some of history’s largest business acquisitions.