Some corporations have chosen not to provide stock options in recent times. This is because the stock value may drop which makes it impossible for the employed to exercise their stock options. Some people are now wary of this provided that economic downturns can make their options lose value. Stock options only help employees if a corporation’s share value rises. If it does not, you lose stock options. There are Internal Revenue Service rules that make it difficult to supply employees with equities, in particular for top executives. Companies cannot eliminate these benefits because the price goes down for hours or days. An employer can only cancel stocks when the value is low for a few weeks.
Jerry Goldstein is a business lawyer with 15 years experience in advising compensation committees, CEOs, management teams, and corporations. He went to New York School of Law, graduating in 1999. He was a partner with Wachtell, Lipton, Rosen, and Katz from 2000-2014. Then he became a partner at his firm, Jeremey Goldstein& Associates, LLC from 2014 until today. Goldstein’s take on shareholder activism, or people who claim there is something wrong with a company’s pay structure when there is not is featured throughout his writings. A shareholder is part of the governing board of a company. Protecting an employee from an activist attack is high on his priority list. Activists want to get their money back from investment capital and return on equity rather than earnings per share or interwoven revenue targets. Compensation programs must fulfill their purpose for existing. Companies have to be wary of the activist achieving membership on the board because they will want to control the company in some way. Goldstein has a handle on why this happens and how to deal with it when the need arises.
To learn more, visit http://officialjeremygoldstein.com/.