Jeremy Goldstein on knockout options and how they could be a good solution

Companies are cutting back on stock options as compensation for their employees as of late. The reason are often more complex than just saving money. The unreliable nature of stocks have employers choosing to forego or not offer them. This doesn’t mean that every employers is doing this, some continue to offer options to their employees. For those employers are looking for another option, no pun intended, leading executive compensation lawyer Jeremy Goldstein has another less risky option. It has an interesting name but is a safer option for company owners.


They are called Knockout options and they could be the next best thing for employers and their employees. They have the same vesting requirements and time limits but there are some between the two. Let’s see how they differ from regular stock options. Knockout option expire when they drop below a certain price. Let’s say that the options stay at a low number for a longer period of time. The employer can cancel them at that point if they choose. Either way it is not costing their company a lot of money and resources they need instead of spending it on accounting costs.


The nature of these particular options are to cancel when they drop below a certain amount so this gives employees real incentive to work hard to make sure it doesn’t happen. They will be invested in seeing the company succeed so they can reap the rewards of the stock options at a higher price. Another factor that makes them a good option is that knockout options reduce the risk for investors and non employees. They won’t have to face overhang threats. They also show lower executive compensation figures making the company’s paperwork show more accurately. This in turn looks good to shareholders.


Stock options can be an uncertainty for employers by their fluctuating nature. This makes them more of a gamble and sometime can eclipse their benefits if they drop significantly. On the flip side they are easy to understand and are seen as a good form of compensation by employees.


Well known companies like Verizon Wireless, J.P. Morgan Chase & Co., and Miller Brewing Company have had the privilege of working with New York City Lawyer Jeremy Goldstein on their biggest corporation transactions in the past decade. With a heart of gold, skill, and a lot of experience Jeremy Goldstein navigates though the world of law with a sense of purpose.


The award winning executive compensation lawyer has been practicing law for a couple decades and continues to help companies thrive. Jeremy Goldstein previously worked at Wachtell, Lipton, Rosen & Katz, a law firm as partner. His skills and experience gave him the courage to start his own law firm called Jeremy L. Goldstein & Associates LLC. When Mr. Goldstein attended college he got his Juris Doctor at New York University School of Law. Learn more: