There has been a changing dynamic amongst many of the world’s most prominent corporations in recent years, and these days, stock options are no longer offered to employees at the rate that they once were. The reason for this change is usually due to increased costs associated with accounting, yet there are also a number of other factors that have contributed to this changing of the guard involving company practices. A few of the reasons for this sharp change in practice amongst these companies include incurring the risk of option overhang, the effects of economic downturns, and the fact that employees often consider increased salary as a better incentive. One of the best alternatives for companies who still prefer offering stock options to there staff members is to include a knockout clause. By including a knockout clause, the risk of option overhang is considerably reduced, as well as the cost associated with the additional accounting steps. A knockout clause is effective because, in the chance that the value of the company’s stock drops significantly, the option becomes completely void.
As the founder of his own law firm, Jeremy L. Goldstein and Associates, LLC, Jeremy Goldstein has been very active in some of the most momentous business transactions of the last ten years. Playing an integral role in United Technologies Corporation’s acquisition of Goodrich, as well as the deal between Miller Brewing Company and South African Breweries PLC, Jeremy Goldstein is the current chair of the Mergers and Acquisition Subcommittee belonging to the Executive Compensation Committee of the American Bar Association Business Section. In recent years, Mr. Goldstein has been named as one of the best executive compensations lawyers in the United States by prestigious directories such as The Legal 500 and Chambers USA Guide to America’s Leading Lawyers for Business. Aside from heading Jeremy L. Goldstein and Associates, LLC, Mr. Goldstein is also a very active contributor of articles regarding corporate governance and executive compensation, and he currently sits on the Board of Directors at Fountain House, which is a developing charity geared at helping men and women overcome issues associated with mental illness. Prior to founding Jeremy L. Goldstein and Associates, he was a partner with another firm, Wachtell, Lipton, Rosen, and Katz. Jeremy Goldstein attended Cornell University, the University of Chicago, and New York University School of Law, receiving his Bachelor of the Arts, J.D., and M.S.
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