Jeremy Goldstein Talks Employee Benefits

When it comes to giving employee benefits, companies have many options. For the longest time, corporations relied on stock options as the number one benefit. Lately, more and more corporations are deciding to opt for other types of benefits. They all have their own reasons but three problems seem to be most recurring.

First, the risk of stock options is becoming more apparent. Stock value drops significantly a lot more than they used to. If the value drops too low, employees don’t have another option. Essentially, it makes their options worthless or puts them at risk of option overhang.

Second, people don’t trust stock compensation anymore. The fact that their money could be gone in the blink of an eye is incredibly terrifying to most people. Today, people prefer to have cash they can keep track of themselves. They’re no longer interested in the casino token style of stock options. Learn more:

Third, accountants are tired of being flooded with burdens. What it really comes down to is a lot of paperwork and man-hours sitting a desk. It just seems easier to eliminate stock options and use that money to pay everyone higher salaries or offer different benefits.

While simply paying higher salaries is tempting, stock options have a greater benefit for everyone. When people have a personal interest in the company’s success, they work harder. Stock options make employees part of the company as more than just an employee. When their futures depend on company success, they’re more inspired to satisfy customers more than usual.

Also, offering equity benefits is getting harder thanks to the IRS. The IRS made some more rules recently, and it’s not easy to give employees equities. In the end, equities might have higher tax-related burdens than standard stock options.

It seems like there are two sides to this story. One is fighting to completely eliminate stock options as a benefit and the other is trying to bring them back. The side fighting to keep stock options relevant is led by Jeremy Goldstein, the top executive compensation and corporate governance lawyer in New York.

He’s one of the top lawyers in the nation for a reason. Jeremy Goldstein has 15 years of experience just dealing with business law. He’s also worked with some major corporations, such as Verizon, AT&T, and Bank One. If he’s not working, Jeremy Goldstein is donating his time to local nonprofits throughout the city.

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