Many corporations have in recent times foregone the stock options as one way of workers compensation plans. To them, it is no longer a working method that can be sustained. It is for this reason that there has been an increase in the number of companies that are not interested in offering them. Although many companies are quoting the excuse of wanting to make more money as the reason they have foregone this practice, this is not the only reason why it is happening. There are so many problems that can be associated with the stock options which companies are experiencing and these have been some of the reasons why they no longer see them as a viable method.
So, what are the reasons why many firms are replacing the stock options? This is a question that New York lawyer and an expert in workers compensation can help us answer. He is an expert who has been in this industry for a long time and therefore knows all the reasons as to why we no longer need them. Jeremy Goldstein insists there are three reasons why many companies have seen the stock options as one of the most unreliable methods of workers’ compensation.
According to Jeremy Goldstein, stock options are costly to the firm. They normally have a negative impact on the company if they happen to lose their value. Workers have also been avoiding them due to the nature of their unpredictability. It is almost impossible to budget for them since you never know the time they will drop in value. The economic challenges that are present today are making it very hard for any organization to be certain of its future. It has become a norm for employees to prefer a higher salary over the stock options.
Jeremy Goldstein recommends varied incentive programs to business organizations. He has worked for over 15 years in the corporate sector dealing with compensation plans for various business organizations. He says that with a good compensation plan, a business stands to gain.
In his service, he has witnessed business organizations face challenges in dealing with workers’ compensation and the shareholding. Some organizations implement methods such as stock options which lead to option overhang. In the end, there is a conflict of interest between the workers and the shareholders. An incentive program that hurts either of these two groups will be ineffective for any business organization. Learn more: http://www.bizjournals.com/newyork/potmsearch/detail/submission/6423046
About Jeremy Goldstein
Jeremy Goldstein has worked as a compensation expert and a lawyer in many organizations. He has the requisite experience to give directions to any company that would be interested in making a worker’s compensation program that is solid and one that is based on the benefits to the company.