Jeremy Goldstein’s Insights on the Benefits of Knockout Options to Employers

Given that stock values at times drop significantly such that employees cannot exercise their options, Jeremy Goldstein explains how knockout options help employers in such situations. Knockout options also come in handy when stock option benefits look more like casino tokens instead of cash, and when the said options cause considerable accounting burdens. Consequently, knockout options serve as some form of insurance cover. With knockout options, employees are free to lose these options when their share value goes beneath a certain point. They also reduce initial accounting costs and spare stockholders unnecessary worry over shrinking ownership shares. Knockout clauses also lead to a more accurate reflection of a company’s yearly…
Read More