Jeremy Goldstein explains the new phenomena behind businesses cutting benefits like stock options to employees, and the end result is pretty simple: it saves the employer money. However, other reasons can be more complex than just saving money.
Some of those reasons include the idea that stock theoretically could drop to very low levels which would debilitate the employee from being able to exercise their stock options effectively, many employees are wary of stock as it can plunge without notice if the company goes under, and options result in considerable burdens for the accounting department.
In the case of the stock plummeting, many employees have been surveyed by companies and largely the findings are that they prefer additional hourly/annual salary and more compensation in their pay than they would rather have extra stock. Others prefer better insurance. Learn more about Jeremy Goldstein: http://files.ali-aba.org/pdf/Goldstein%20new%20BIO.pdf
Plus, companies prefer that as it makes the treatment for all employees more equal and unbiased. Many companies are also offering discounted stock to keep employees happy, allowing them to purchase the stock at 25-50% of what someone outside the company pays for it. That’s a solution that meets in the middle of the road for everyone.
According to American Conference, Jeremy Goldstein is a Partner at Jeremy L. Goldstein & Associates (LLC) who graduated from the New York School of Law back in 1999. Today, he has over 15 years of experience with law and helping people understand their rights. His career includes a 14-year stint with Watchell, Lipton, Rose, & Katz before coming to establish his own law firm in 2014.
Jeremy Goldstein’s focus throughout his career has been corporate compliance with compensation issues that arise between employers and employees and ensuring that the laws are followed when disputes arise as well as when companies merge to make sure everyone gets what was owed to them according to the corporate compensation requirements written into the law.