Category Archives: Law

Jeremey Goldstein and Knockout Options

Jeremy Goldstein is currently the chief executive at Jeremy L. Goldstein and Associates LLC, which is a law organization that provides advising and related services to CEOs, corporations, and management groups. Before being the founder of his own company, Jeremey Goldstein was heavily involved and was a partner at companies such as Lipton, Rosen, Katz, and Wachtell.

 

Goldstein has studied at the New York University School of Law and currently lives in the Greater New York City Area. Additionally, he has studied at the University of Chicago and Cornell University, receiving a prestigious Masters and Bachelor’s of Arts respectively.

 

Goldstein has been heavily involved with large upscale transactions in the past decade, including the acquisition of the multi-million dollar company, Goodrich by United Technologies, Duke Energy, Sanofi-Aventis, and Merck/Schering Corporation.

 

Currently, Goldstein is the chair of the Mergers and Acquisition Subcommittee of the American Bar Association and writes about various corporate governance issues. Additionally, Goldstein is heavily involved with programs such as Make-A-Wish Foundation and Fountain House, a charity which focuses on the recovering individuals with mental illness.

 

Jeremey Goldstein more recently wrote about knockout options, where he seeks to help employers with stock options.

 

Recently, employers have stopped providing their workers stock options. Many of these companies simply wanted to save extra capital, however, others did it for many complicated reasons. There are three main problems with why companies choose against stock options.

 

First, the stock options may tank, thus rendering the employee options useless. If this happens, then workers will choose not to pick the option in the first place. Moreover, the stockholders face the task of overhang.

 

Second, many workers are aware of the economic downturns and recessions in the economy. As a result, they will rarely choose stock options if there is an indicator that the economy will likely be taking a downturn. At this particular point, the stock options act more so as gambling pieces than monetary compensation.

 

Lastly, these stock options cause significant accounting burdens, capable of making companies lose thousands, if not millions of dollars. Moreover, the stock option benefits could easily be overcome by a higher pay.

 

Nevertheless, stock options are beneficial because they tend to provide a form of compensation comparable to no other forms of currency. Employees may work harder to achieve tasks if they know that their work is contributing towards higher returns for the company, thus more gains for their stock option. Learn more: https://lawyers.justia.com/lawyer/jeremy-goldstein-1275422