A few decades ago, providing employees with stock options was a common practice. Many companies paid a fraction of their worker’s salaries by giving them an equivalent stock in the company. This approach ensured that the company minimized its wage book while providing its employees with investments. Jeremy Goldstein contends that this practice is becoming less common.
The disapproval of stock option has been caused by three main factors. First, the drop in value of stock has made the option less appealing to employees. Secondly, employees have become wary of this method of compensation owing to economic crises that has seen most of them suffer losses. Paying staff with shares exposes them to market risks. Through stock options, one can lose a big share of his or her compensation. Lastly, the complex accounting needs arising from stock options has discouraged many companies from using this method of compensation.
Despite of these cons, there are several pros to stock options. Companies can consider stock options instead of wages, insurance coverage or equities. The first benefit of stock option is that it provides an equivalent value to all staff. Secondly, employees stand to benefit if the value of the shares rises. Companies benefit in terms of increased productivity, as the options encourage employees to work harder to ensure the company becomes successful.
Jeremy Goldstein is a revered attorney. Over the years, he has been specializing in employee benefits and compensation of management leaders such as chief executive officers and presidents. As the founder and partner at Jeremy L. Goldstein & Associates, Jeremy Goldstein has fifteen years of experience in business law. He is the manager of his law firm.
The business law expert uses his skills to benefit clients. Verizon, Bank One, Duke Energy, AT&T, and Chevron are some of his leading clients. Besides being a lawyer, Jeremy Goldstein is a philanthropist. He sits on the board of Fountain House, a nonprofit organization.
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