The Knock-Out Strategy of Jeremy Goldstein

Jeremy Goldstein is founder and partner of the New York City based law firm Jeremy L. Goldstein and Associates LLC. The firm specializes in providing legal advice to company executives and Chief Executive Officers on a host of financial topics including executive compensation and benefits as well as corporate governance issues. Goldstein obtained his Juris Doctoral degree from New York University’s School of Law. He also received his Master’s degree from the University of Chicago and a Bachelor of Arts from Cornell University. He serves as chair on the Mergers and Acquisition Subcommittee in association with the American Bar Association as well as on the Board of Directors for the Fountain House Charity organization. This charity assists individuals with the recovery efforts associated with mental health issues.


Recently, Jeremy Goldstein conveyed his thoughts on how knockout options can help employers and their employees in the workplace. His article for the website highlights these ideas in a persuasive and informative manner. His thoughts on why corporations have recently stopped providing their employees with company stock options is articulated throughout the piece. Three points of highlighted interest are that company’s stock value could have dramatic swings in value, making it near impossible for these individuals to utilize these funds within a profitable measure. Economic downward trends will affect these values as well and employees often will opt for higher increases in monetary compensation as opposed to stock.


It is Goldstein’s opinion that providing employees with stock options could also be a positive aspect to that individual’s employment status. The stock value applies to everyone involved and often would be viewed as a community-based effort of financial benefit as opposed to raises and compensation increases that usually target a single individual. Employees receiving stock may look at their position with more substance, working harder in an effort to increase the success of the business and as such, increasing the value of the stock. Other benefits that Jeremy Goldstein touches on is the Internal Revenue Service sets parameters on employees receiving compensation increases and equites. Stock option guidelines are far less evasive on the tax-paying employee than monetary increases through salary or hourly-rate pay increases.


Jeremy Goldstein refers to the known concept of knockout options which sets limitations on the availability that employees can purchase company stock, based on its value. The issue that becomes present with this method is setting the time frame that makes this option either available or unavailable. Financial implications occur as well with quarterly profit to loss margins effected and that information must be submitted to each corresponding government agency. These numbers will then affect the accounting department and must be documented within the tax code of the Internal Revenue Service. Learn more: