Jeremy Goldstein Explains Why Organizations Should Embrace Knockout Stock Options

Jeremy L. Goldstein is a prominent business lawyer whom CEOS, managers, and corporations consult for legal counsel whenever they have issues with compensation and employee benefits. He is a partner at Jeremy L. Goldstein & Associates LLC, a firm he started in June 2014 after working as a partner at Winchell, Lipton, Rosen & Katz for 14 years. Goldstein has a Bachelor of Arts in Art History from Cornell University, Master of Arts in Art History and has a J.D. from New York University, School of Law.



Goldstein has handled some of the most significant corporate dealings in his career. He was involved when UTC acquired Goodrich, the transactions between Verizon and ALLTEL Corporation, the dealings between Chevron and Unocal Corporation among many other deals affecting some of America’s largest companies. Jeremy Goldstein sits on the board of Directors at Fountain House besides being in the prestigious NYU Journal of Law and Business’ Professional Advisory Board. He is also an author and public speaker on compensation and employee management topics.



Goldstein has written a blog justifying the benefits employers stand to reap when they adopt the knockout strategy with stock options. Stock options have so many benefits to the employer, and that is why many managers prefer giving employees stock options. This compensation strategy is popular because employees only get extra personal earnings when the company’s share value and performance in the stock market improves. This means employees are motivated to work hard, and when the company succeeds, everybody gets rewarded. The options, compared to providing shares, provide a tax relief for corporations which have compensation packages for top executives.



Goldstein’s blog could not have come at a better time as it explains why knockout is the most appropriate strategy when it comes to stock-based compensation. He says the approach is sure to save costs and minimize over-hang threats where there are investors who are non-employees. Consequently, stockholders do not have to panic over dwindling ownership shares. With the knockout strategy, employees only lose the options if the share value drops below a particular mark or stay down for over a week. Significant falls in stock value often mean employees cannot utilize the options available to them. Employees, therefore, increase their efforts to prevent plunging of the organization’s share value. Jeremy Goldstein believes that knockout stock options can eliminate most of a company’s challenges in implementing compensation strategies that are stock-based.