Jeremy Goldstein, founder and partner at Jeremy L. Goldstein and Associates LLC, a law firm focused on advising compensation committees he has fourteen-years’ lawyer experience at Wachtell, Lipton, Rosen, and Katz.
Jeremy Goldstein has been involved in the largest corporate transactions such as the Goodrich acquisition by United Technologies in addition to being associated with renowned companies like AT&T, Chevron, and Merck. Additional feathers to his cap include skills in corporate law, governance, mergers and acquisitions, startups and securities regulations.
It is with this vast knowledge that Jeremy Goldstein brought about ‘knock-out’ options which aim to allow corporations to get the most out of stock options for their employees. Most firms result in dropping stock options with the aim of saving money, avoiding the risk of overhang due to decrease in stock value and avoiding considerable accounting burdens. In other cases, the employees tend to prefer higher salaries at the expense of the stock options.
According to Jeremy Goldstein, all the above can be controlled by the ‘knock-out’ options. These are quite similar to the conventional options but can be lost in the event of a drop in the firm’s share value below a certain threshold and upon remaining low for at least a week. Non-employee investors, therefore, avoid overhang threats from options that cannot be exercised while serving as a great incentive to employees having them ensure the share value doesn’t plummet.
Stock options are advantageous to firms when the right strategy is applied in their implementation. Advice from experts such as Jeremy Goldstein does go a long way in the perfect introduction of knock-out options to firms for a more productive outcome.
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