As the economy continues to be unpredictable, large corporations are deciding not to give their employees stock options. Some do it because of its financial burden and others do it for more complex reasons. There are three main reasons that have companies convinced not to award these benefits to their employees. Learn more : https://www.visualcv.com/jeremygoldstein
First, options are tied to the stock value. Therefore if the value drops, employees will not be able to exercise their options. Regardless, companies are still forced to report any associated expenses, leaving stakeholders with the possibility of option overhang.
Second, employees don’t trust this type of compensation. They are weary of options because they know that if there is a economic disaster, their options could become worthless. Because of that, they view these options more as a trip to the casino, rather than a solid reward of cash.
Finally, options increase the accounting burden. Therefore, the resulting costs could turn any financial benefit into a worthless cause. Most employees seem to rather want a higher salary instead of the options.
Jeremy Goldstein however points out several benefits that these options provide. Stock options can be considered better than increased wages or equities because options are simpler for employees to understand. Since options are tied to the value of the company, it leads them to work harder at bringing in new clients and keeping their current clients happy.
Jeremy Goldstein has become one of the country’s top corporate lawyers. He’s become a leading expert on corporate governance and executive pay. He has been involved in many of the top corporate transactions in history including AT&T, Chevron, Merck, Energy and United Technologies. Jeremy Goldstein is the founder and partner of Jeremy L. Goldstein and Associates. Jeremy Goldstein continues to help companies make the best decisions when it comes to compensation.