Jeremy Goldstein: The decline of stock options as a means of workers compensation

It is true that stock options are one of the commonly used methods of workers’ compensation. It is one of the means by which players in the business sector show appreciation to their employees. However, lately, there has been a decline in the number of companies that are taking this method as a profitable way of doing business. Stock options are already posing some risks that if not addressed by a company may lead to a decline in the company’s fortunes. Stock options have been on a decline, a phenomenon that can only be explained by looking at the disadvantages that are making players in the industry to forego them. Learn more:


Jeremey Goldstein, one of the most decorated compensation lawyers in the country, have been looking at the topic of stock options and have come up with some reasons why they are no longer a good option for anyone looking to make progress in the business sector.

The main reasons why business have been avoiding them is because they affect the financial status of a company. Whenever the stock options lose value, they cause options overhang. It is an occurrence that creates a problem in the shareholding capacity of the investors in the company. Businesses have been taking alternatives that do not affect the shareholders of a company, to avoid tarnishing their reputation.


Stock options also face rejection from the employees. Employees no longer consider them viable. They are unpredictable and can fall at any time depending on the performance of the company. For businesses to avoid negative effects whenever they perform badly, workers are taking the option of an increased salary as opposed to the stock options.


Earnings per share (EPS)


Jeremy Goldstein has clout when it comes to picking the best incentive programs for businesses. He has worked with large institutions such as the Bank of America and Verizon where he has advised the executives on some of the best incentive programs they should implement in their places of work.


EPS is one of the methods that he recommends. When EPS is incorporated into the payment structure of an organization, it increases the likelihood of the company performing better. EPS determines the decision of the shareholders to buy or sell their stocks.

However, the EPS is not without a flaw, according to Jeremy Goldstein. There is much competition in the business environment which renders this strategy ineffective at times. A business organization, therefore, needs to use the right approach when determining the type of employees’ incentive to apply.


About Jeremy Goldstein


Jeremy Goldstein has been in the corporate business sector for a long time. Jeremy Goldstein owns one of the biggest law firms in New York called Jeremy L. Goldstein & associates. Jeremy Goldstein has earned a reputation as one of the best minds in the industry.

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