While most employers have chosen to withhold giving stocks in the company to employees working in the firm, this might not necessarily be a bad thing according to Jeremy Goldstein. As a founder and CEO of Jeremy L. Goldstein & Associates, LLC, this expert on the topic has a significant amount of experience in dealing with payroll issues that often occur when shares are handed out to employees as part of their basic compensation package. He is also on the board of directors and compensation committees, which has led him to understand that there are better options for employers rather than giving company stocks as part of the salary package to employees.
According to Jeremy Goldstein, company shares when mandated as part of the base salary structure are not valued by employees, as they would instead prefer getting money as compared to what many may perceive as tokens given at casinos. These shares, when handed willy-nilly to employees, might not encourage them to work harder. However, employers can, in fact, turn the tides in their favor while ensuring that employees are kept happy as well.
Knock out options, are a type of stock choices, that benefit the employer in more ways than one. These shares are meant to be given as additional wages instead of mandated insurance, equity, and other bonuses. Knockout options when granted or bought at a particular value do not depreciate when the company is facing a loss. Instead, these time-restricted shares are entirely lost by employees if the company’s share value drops by approximately 50%. This, in turn, implies that employers do not have to compensate employees when they are not contributing to the betterment of the company. Knock out options also ensure that if employees contribute to the success of the business by working harder and smarter, then they can get maximum benefits.
Knock out options can encourage workers to be a part of the company’s success while dissuading them from slacking while work needs to be done. According to Jeremy Goldstein, knock out options do not necessarily omit all the hassles that arise from providing employees with company’s shares, but when given as a bonus, these stock choices can indeed reduce accounting hassles for both the firm and employees.
Jeremy Goldstein has acquired a J.D from the New York University School of Law and coupled with his immense experience in the finance sector; he has the needed expertise to provide realistic and practical solutions that can benefit not only employers but also staff members that toil to make companies great.
Visit http://officialjeremygoldstein.com/ to learn more.