Jeremy Goldstein on Knockout Options Potentially Helping Employers

Jeremy Goldstein grew up in New Jersey and relocated to Asheville in 1999, where he married his wife, Heather Whitaker Goldstein. Currently, he has four boys and a couple of dogs. Their day is anything but boring as it is filled with the boys attending school, involved in clubs and sports. Jeremy’s wife, an attorney, […]

Jeremy Goldstein grew up in New Jersey and relocated to Asheville in 1999, where he married his wife, Heather Whitaker Goldstein. Currently, he has four boys and a couple of dogs.

Their day is anything but boring as it is filled with the boys attending school, involved in clubs and sports. Jeremy’s wife, an attorney, works for the Van Winkle Law Firm and is also very active in the community as a volunteer as well.

Jeremy’s professional career started when he graduated, in 1994, from the Duke University with a degree in Public Policy. He started out in commercial real estate in D.C. until he relocated to Asheville. Jobs were scarce in his line of work so he built his own practice, G/M Property Group.

G/M Property Group has been a big part of the downtown life and the life force behind targeting investors and bringing local business to help re-establish life, jobs, and growth to the community. Learn more about Jeremy Goldstein: http://thereisnoconsensus.com/jeremy-goldstein-explains-knockout-options-help-employers/ and http://www.bizjournals.com/newyork/potmsearch/detail/submission/6423046

In the recent years, a lot of corporations have quit providing employees with stock options. Often it was done to save money but this was not always the reason.

Some disadvantages of doing this are that stocks can drop and make it nearly impossible to use their available options. Also, many employees have become suspicious to this method of compensation – if the company has a downfall it could make the stocks worth very little or nothing in the long run.

One last common reason is that it can run the accounting department into a mathematical nightmare and can often not seem to be a relevant investment for an employee looking at current benefits.

Some advantages are that the stocks can still be a preferable alternative to help the employee start putting away money towards their investments. It can be a potential risk that can provide even more benefits in the long run if it is a gamble the employee can take. It can, however, make it more difficult for the company to potentially face higher tax burdens.

Jeremy Goldstein has a solution in regards to encouraging and awarding options to employees with the benefits mentioned above, but following some certain rules.

By accepting a “knockout” the stock options will have the same time limits as the other options. The employee will lose them if the shares fall below a specific dollar amount for a specified amount of time.

By supplying this knockout option, non-employee investors won’t face overhang threats. It can also cause the company’s annual proxy to show a more accurate figure of earning and looks far better to shareholders.