Financial expert Jeremy Goldstein recently explained the preferred method of employee stock options, called the “knockout” option. While stock options have distinct advantages, those advantages can be reduced significantly by a number of factors, including a downturn in company revenue/performance or a general market correction. Jeremy explained that the way to combat that vulnerability is to apply a “knockout” strategy. This essentially weaves in a protection for the employee where the stock options would be payable in cash if there is a significant drop in share price. The ability for an employee to have some flexibility with their stock options gives them a peace of mind and encourages them to participate in the options program, while giving the corporation incentive to continue or start a program.
Jeremy Goldstein is a New York-based attorney that specializes in corporate law including employee benefits. He is currently a partner at a law firm he started, Jeremy L. Goldstein and Associates, and has nearly 20 years of experience. Prior to his work with his law firm, Jeremy Goldstein was a partner at Wachtell, Lipton, Rosen & Katz for fourteen years, following a one year stint as an associate at Shearman & Sterling LLP. Learn more: http://jeremy-goldstein.wikidot.com/
Jeremy Goldstein holds a Bachelor’s in Art History from Cornell University, a Master’s in Art History from the University of Chicago, and a law degree from New York University School of Law. He is an active member of the New York City community, serving as the Director of the Fountain House for the past ten years.