Knockout options are soon going to be the new way for companies to compensate their employees, opting for less busy work and more stable incentives that employees will appreciate. When it comes to finding the best talent on the market, companies need to create a compensation plan that is appealing to beat out the competition and this becomes very cut and dry with the knockout options on the table. In the past, stock options were the way to go for corporations when offering incentives. This was because stock options were investments in the company and the stock value can potentially increase, meaning incentive increases. The problem with this is the stocks can also decrease, meaning employees will be unhappy when their incentives diminish.
According to Jeremy Goldstein, who has been working in compensation law for decades and owns his own practice in New York, Jeremy L. Goldstein & Associates, these knockout options are more aligned with what employees want. At the end of the day, it saves corporations time and money by removing stock options, but it also makes job hunting and acquisition a much easier task for employees. With clear incentives presented, employees are able to quickly assess their possibilities and net growth for every company.
Jeremy Goldstein has personally written various articles on the subject to help anyone interested, especially employees, to understand what these changes will mean in terms compensation packages. According to Jeremy’s research, most employees would rather have more money each week for a bigger salary than having potentially higher incentives in the form of stock options. There is the potential for companies to use this new balance of power to their own advantage, but this would be to the companies demise considering the penalties it would cause if they were caught. Stock options across the U.S. have mostly disappeared, and it won’t be long until all corporations adopt this new method of compensation. Learn more: https://www.crunchbase.com/person/jeremy-goldstein#/entity