The stock option menace according to Jeremy Goldstein

Corporations have, in recent times, decided against giving stock options to employees. This is a decision not only guided by the fact that these firms want to save money but one governed by so many other reasons. The following is a list of some of this causes:

  1. A drop in stock value may make it difficult for employees to put to use their stock options. Businesses, however, need to make public some of the expenses that may result from this. They also need to remind stakeholders that they face the risk of having their options overhang.
  2. Employees become suspicious of this compensation method. They know that any toll on the economy impacts negatively on their options.
  3. Options may result in an overload on the accounts. Employees still prefer high salaries to stock benefits. They consider them, high wages, to be more beneficial or attractive than stock options.

Of what advantage are stock options then to the employer? Jeremy Goldstein provides this answer to us.

Employees still relate to stock options better. Although a number of them prefer high salaries to stock options, most of them still do value stock options. They view them as an equating factor, that is, something that places all of them at the same level.

Consequently, options can only be of benefit to the employees if the value of the company’s stock increases. A company’s stocks can only increase if the firm experiences tremendous success. Employees are, therefore, motivated by this fact to work harder.

The Internal Revenue Service regulations make it hard for the corporation to give equities to their employees.

What then is the solution to all this? Jeremy Goldstein is also of much help in this, matter.

Employers should put to use the ‘knockout,’ a barrier that shields the corporation. This knockout technique states that an employee loses their stock options if and when the value of this stocks falls to reach some amounts. The knockout method also requires that the stock options have a time limit, for example, five years.


About Jeremy Goldstein

Jeremy Goldstein is an executive compensation expert with a J.D from the New York University Law School. He is one of the pioneers of Jeremy L. Goldstein & Associates LLC Mr. Goldstein writes, and public speaks on corporate governance and also offers advice on executive compensation. Before forming his law firm, he was part of the Wachtell, Lipton, Rosen & Katz.

Goldstein has overseen processes such as the buying of Goodrich by United Technologies among many other things. He is also a Fountain House, a charitable non-profitable organization that seeks to promote awareness of mental illness.


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Hurricane Harvey Victims receive Financial Support from US Money Reserve

Us Money Reserve in partnership with Austin Disaster Relief Network (ADRN) managed to raise up to $219,622 to support the victims of Hurricane Harvey. The precious metals dealer which has its headquarters in Austin Texas came in handy to provide the much-needed help to the victims who were in dire need. The executive director of ADRN Mr. Daniel Geraci applauded the move by US Money reserve terming it as a real gesture of humanity to the people of Texas.


“We are very pleased with the decision of US money Reserve to partner with us during this difficult moment and I wish more companies could emulate the same. Together with the company, we have been able to raise a significant amount of money that will go a long way in helping the Hurricane Harvey victim” said a Mr. Geraci. US Money reserve CEO Angela Koch on her part assured all victims and residents of Texas of the company’s unwavering support ( “We are going to do all that’s within our power to ensure that our people get the necessary help that they need” said Angela during an interview. She added that the company was part and parcel of Texas and that they would not abandon them in times of need.


Hurricane Harvey hit Texas on August 25, 2017, and left a great damage besides rendering thousands of people homeless. The devastating category 4 Hurricane saw many people in need of basic needs such as shelter and food something which prompted the Austin Disaster Relief Network to seek for financial support in order to meet the needs of the victims. Lucky enough, US Money Reserve acted swiftly and created an emergency relief fund that enabled the two organizations to contribute over $200,000 in cash. Besides, the federal government also came in handy to support the Hurricane Harvey victims.


US Money Reserve is a certified distributor of US government issued platinum, silver and gold coins. The company was started way back in 2001 and has since grown into one of the largest precious metal companies in the United States. Apart from its headquarters in Austin Texas, the company also has offices in Beaumont and Houston.


The CEO of the company, Angela Koch in a recent interview expressed optimism about the future prospects of the company. “We are very happy with the current situation of the company, however, we expect to broaden our network and reach even more customer in the coming years”, said Angela Koch.