Jeremy Goldstein Advises Using A Knockout Clause On Stock Options

Jeremy Goldstein is a lawyer who is currently the founder and partner of Jeremy L. Goldstein and Associates. This law firm is a specialty business law firm that is dedicated to advising businesses on matters of compensating their employees. The firm has worked for dozens of major top corporations, and it is able to help companies offer their employees extra compensation while not reducing their overall bottom line.

 

Jeremy Goldstein has received a B.A. from Cornell University, a law degree from the University of Chicago, and a J.D from New York University. He is the chair of the Mergers and Acquisitions Committee of the American Bar Association, and he is on the advisory board for the law journal of New York University.

 

Jeremy Goldstein is a prolific author, and he recently published an advisory guide on how to provide stock options to employees. He names of a number of risks associated with paying employees in stock options. These risks include potentially lowering the stock price, the compensation not being around in an economic downturn, and that many employees are averse to being paid in stock options. However, he is able to point out a number of benefits of using stock options. This includes not using a company’s cash reserves for payroll, and it allows for a company to provide compensation they might not be able to offer.

 

Jeremy Goldstein advises that companies use a knockout clause when paying stock options. These options eliminate a stock option if the stock price goes below a certain amount for an extended length of time. This encourages employees to sell their options if the stock price is going down. This has the benefit of reducing the amount of tied up options. This allows for a business to reduce their overall obligations, and it will encourage outside investors when stock prices are going down. Learn more: http://clsbluesky.law.columbia.edu/author/jeremy-l-goldstein/