Jeremy Goldstein- Disadvantages of stock options

Stock options have been losing their spot on the priority lists of many corporations. They have become unattractive due to a number of reasons. According to these corporations, the stock options do not favor their saving plans. They have therefore resorted to removing them so that they can save more. Although this is the reason that has been propagated by these organization, according to a corporate lawyer on workers compensation Jeremy Goldstein, these corporations have other reasons than the ones they are giving. These are three reasons as to why stock options are losing their place in corporations.

 

One, the stock option can drop their value in a big way such that it is impossible for the workers to exercise them. When such a situation happens, the corporation is still expected to file all the expenses involved when the stock value drops. The ultimate result is that the stockholders will be affected. The workers will be subjected to something called option overhang. This is not a good thing for a company since it may taint its image to the outside world.

 

Two, employees nowadays view them as a gamble. No one is sure of their value. With the economic downturns that are being experienced lately, stock options can easily become worthless. Many employees, therefore, choose to avoid them for uncertainty reasons.

 

Thirdly, many accounting burdens are associated with stock options both for the corporations and the employees.

 

About Jeremy Goldstein

 

Jeremy Goldstein is a lawyer and founder of Jeremy L. Goldstein &Associates. Jeremy Goldstein is known for his expertise in corporate governance and compensation strategies for corporations. Jeremy Goldstein is a prominent lawyer in this category and has assisted numerous corporations to come up with compensations plans that work. Jeremy Goldstein is also a member of various organizations such as the Mergers &Acquisitions subcommittee.

 

Visit http://jlgassociates.com/ to learn more.