According to Jeremy Goldstein, knockout options are helpful to employers in various ways. Knock out stock options just like others have the same time limits and vesting requirements. However, if their share values falls below a certain amount, then employees lose them before a lot of losses are experienced. However, it should be noted that knockout options do not solve all the problems associated with stock-based compensation, but they banish some of the biggest obstacle associated with them.
Benefits of Knockout Options
This is beneficial to employers because the knockout option reduces initial accountings costs if the company’s stock is comparatively volatile. Additionally, non-employees do not have to worry about overhang threats associated with shrinkage of ownership shares from options that cannot be exercised. Additionally, companies also get the privilege of its annual proxy reflecting earnings more accurately due to decreased executive compensation figures on annual disclosure documents. This makes the firm also look better to shareholders. Lastly, knockout potions help employees prevent the drop of stock value to levels below the forfeiture threshold.
Jeremy Goldstein currently serves as a partner at Jeremy L. Goldstein & Associates, LLC. He previously worked with Watchell, Lipton, Rosen & Katz where he was a partner for 14years. He also worked with Shearman & Sterling LLP where he was an associate for one year. Jeremy Goldstein attended New York University School of Law for his Juris Doctor in Law from 1996-1999. He also studies at the Cornell University and University where he obtained his BA in Art History and MA in Art History respectively.
Jeremy Goldstein is skilled in corporate governance, restructuring, executive pay, mergers and acquisitions, and corporate law, among others. He is fluent in French and when not working he spends some of his time doing philanthropy work. He currently volunteers at the Fountain House as a director and has been doing so for the past decade.
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