Corporate compensation is taking another shape in recent times. The means of compensation that are applied in these corporations are changing. Why are they changing? Because the economic environment in the world is also changing. The means of compensation that are applied nowadays cannot be equated to those that used in the past. The stock options have been applied for a long time. They are compensations plans that are however are becoming unappealing to the players in the business sector. The compensation plan has changed due to changes in the economic environment. Many corporations are dropping them as they regard them as expensive for business growth. With the challenges that are posed by this method of business compensation, it is not good for any business. The reason it should not be applied as described by Jeremy Goldstein is that they have three main problems.
The number one reason that they should not be applied is that they create an accounting burden for the company. In case the share value of a company drops, it will be impossible for the employees’ to execute their stock options. This is not good for business since it means that all the expenses that are related to the stock options are to be taken by the company. This is a move that will hurt the business. There have also been concerns about their eligibility. With the world’s economy fluctuating, their values cannot be predictable. It is more of a gamble one is making. It is not possible for a person to make any significant income when stick options have dipped.
About Jeremy Goldstein
Jeremy Goldstein is an attorney in NY. He has a law firm known as Jeremey L Goldstein Associates. He established his firm in 2014. He has however been in the law practice since 1999. Jeremy Goldstein has been advising corporates on how to approach the issue of corporate compensation. Jeremy Goldstein has a law degree from the New York University School of Law.
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