Jeremy Goldstein is a guru in employee compensation

Jeremy Goldstein explains how knockout options help employers-article recap

Firms have come up with ways in which they save money. One of the options that have been in use in the recent years includes not providing employees with a stock option. There are problems that lead to organizations choosing this option.

 

One of the problems is that the value of the stock may drop and may limit the options that are available to employees. Another problem is that employees in the recent years do not prefer stock option as a way of compensation. This is because they think that economic situations may lead to the stock becoming worthless. Also, having the stock option as a way of giving benefits may lead to accounting burdens. This option has costs that may exceed the benefits from giving this option.

 

However, there are advantages of giving a stock option as a method of compensation. It can be used and is preferable to giving higher salaries and better insurance coverage. A stock option is easily understood by employees. Another advantage is that employees will tend to prioritize the success of the company. This is because when the stock price rises, the employees stand to gain.

 

Solution

A company can adopt the right strategy and gain the benefits above. A company can use the Knockout Strategy. This strategy is such that it has the best benefits as the stock option; however, employees stand to lose them if the stock price goes below a certain amount. The knockout strategy does not eliminate problems associated with the stock option compensation, but the obstacles that are associated with stock option are minimized.

 

About Jeremy Goldstein

Acting as the chair of Mergers and Acquisitions at the American Bar Association, Jeremy L. Goldstein is also a partner at Jeremy L. Goldstein & Associates LLC. The company main business is advising companies on compensation, CEOs, and management teams. It advises companies on matters to do with governance and sensitive situations and events in the corporations. He is also a speaker on corporate governance and executive compensation.

 

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When Securus Technologies Made Our Jail Safer

Over the last few years of working as a corrections officer in Arizona, the state prison I am stationed has really seen an explosion in the inmate population. While the cells used to house a few inmates, now is stuffed with a half-dozen dangerous criminals. Tensions get heated more frequently and many times that spills over to other areas of the facility. Now other inmates, staff, guests, and officers are all in grave danger any time they are inside our facility.

 

To try and limit the violence, my team of officers are working hard at keeping drugs and weapons out of this facility. Each morning we will do cell inspections while the inmates are at breakfast. We then scan every guest that comes to the jail to see an inmate to make sure nothing in their possession could be given to the inmates to be used to cause harm. Before we will allow the inmates back to the cells after meeting with family and friends, they are scanned again so nothing they shouldn’t be in possession of makes it back to the cells.

 

It seems like only a few years ago that my team of corrections officers would have to be stationed inside the call center so we could listen to the inmates talking to their families and friends on the jail phones. Not only could these officers have been utilized elsewhere, this was not an exact science. That all was about to change the day Securus Technologies installed our modernized monitoring system.

 

Securus Technologies reinvented how officers can monitor calls, making use of the LBS software to do the work while officers get back to maintaining order in the prison. Securus Technologies has been instrumental in helping reduce violent episodes in our prison and allowing my team to make this facility safer.