Jeremy Goldstein is the most sought-after business lawyer. Majority of the companies would and turn to him when legal business matters arise in their organizations. Jeremy Goldstein is the man behind main deals in corporations like AT&T, Bank one, Verizon, Duke Energy and Verizon. With over 15 years of working experience, he is a partner at Jeremy L. Goldstein & Associates, LLC, a firm that he started independently. Jeremy Goldstein speaks and writes on executive compensation issues and corporate governance.
It is clear that today; all organizations might be potentially affected by the shareholder activism wave. Companies thus need to write up compensation policies and programs. The Jeremy L. Goldstein & Associates LLC deals with recommending best practices when it comes to matters compensation for CEOs and executive teams. Before dealing with measures of curbing shareholder activism, it is essential to know what would lead to this activism. Below are options to explore as highlighted by Jeremy Goldstein.
Most companies would deny their employees stock options because of the following reasons.
- Dropping of the stock value. This is not full proof as some employees would still exercise their choices. Corporations have to inform about associated expenses and those at risk of facing option overhang are shareholders.
- Most workers are cautious of this mechanism because they know that in case of an economic downturn there will be less or no reimbursement.
- This merit is invaluable to employees when considered against the higher wages they would get paid if this method was non-existent or redundant.
With all the demerits of this mechanism, you will find it being applied because it could end up being advantageous in the following ways:
For starters, it is easier for the employees, with relevant background, to understand what a stock option is.
If the company’s stock value rises then the worker will enjoy a rise in their wages hence the workers will work toward the prosperity of the organization. This would translate into maintaining the already established clientele, captivate new customers and come up with creative services.
An organization can adopt the knock out strategy. This option has a time limit and unique requirements. If the share declines to a certain amount, the workers lose their rights. This option makes sure that the staffs are determined to push themselves to the well-being of the company so that their pay increases.
If you have any queries contact Jeremy Goldstein at http://officialjeremygoldstein.com/.