There’s been a huge trend swiping across the corporate world as of late. More and more companies are getting rid of stock options and looking for more preferable employee benefits. Employee benefits are something not a lot of companies think about until it’s too late.
Well actually, it’s never too late to start thinking about employee benefits. The problem is picking the wrong type of compensation method and then rushing to correct that mistake. Although every company can change compensation methods whenever it chooses, they should be careful before picking another so soon.
There is a risk of putting themselves in a deeper hole if they act too quickly. If any corporation already has a compensation method picked out and want to change, they should wait at least six months before switching to the new method. Acting too quickly can give them bad quarterly numbers, and that’s a lot scary than compensation methods.
The bigger question isn’t what compensation method should companies use; it’s why are they no longer using stock options? Stock options have been the corporate world’s go-to employee benefit for decades. From the time people wanted employee benefits, companies offered stock options.
Recent fears have inspired many companies to eliminate stock options and offer something different. The most popular choice seems to be equities, but that won’t last too long. As the IRS creates more rules pertaining to equities, it may become harder to offer equities than continuing to offer stock options.
The next option companies are turning to is just giving employees higher salaries or wages. It’s the next logical choice and it seems to be what people want. The only problem with higher wages or salaries is that it usually causes too many problems when it comes to equivalency amongst employees.
This is a huge discussion and the team supporting stock options is being led by Jeremy Goldstein. Jeremy Goldstein is a business lawyer in New York with over 15 years of experience in executive compensation and corporate governance. Many of his clients are coming to him to discuss employee benefits.
While his expertise is desirable, his entire firm handles clients with these same problems and more. If Jeremy Goldstein isn’t available, one of his partners can handle the same issues. Learn more: https://bestlawfirms.usnews.com/profile/jeremy-l-goldstein-associates-llc/overview/70073