Publicly traded companies are ones that have public shareholders as the decision makers of the company. These companies are influenced by the money injected into them by these shareholders. Most of them, therefore, as stipulated by the laws, participate in stock exchange options which have proven to be a very credible source of income generation. This has boosted revenue turnovers in these companies. Some of these companies have given its employees the chance to access and trade stock options of the companies they work for.
However, with recent changes and developments in insider trading and other corporate vices, companies have toned down the idea to involve employees in their stock trading options. Factors that have led to this directive include; employers have started being scared of the fact that during economic hardships, the stock options held by these employees may be rendered “useless” and thus will have the same effect on the company as a whole. Another one is that, when these stock options fail or are trading at a meager price, constant factors like expenses are still incurred and thus may negatively impact the organization.
Then there is the conflict of accounting and stock options. Stock options are tough to explain. Again, employees prefer other compensation schemes such as salaries and remuneration and thus many would rather prefer that to stock options.
However, there are some benefits of employees trading in stock options, which include; focus is shifted to the company and thus an employee can be able to put the company first because his/her effort will dictate his/her earnings too. Another one is the obvious boost in earnings, of course only when the stock options are trading healthy. An organization that had employees trading in stock options is at an advantage because of its ability to hold stocks when things are not so good.
Jeremy Goldstein is an American attorney who specialized in employee benefits. He is a leader in this niche as he has amassed an immense wealth of experience spanning over fifteen years. Over the years, he has had the fortune of starting his law firm, Jeremy L. Goldstein LLC, a firm that has dedicated its operations to advise multinational on compensation schemes. Some of the companies with his footprints include; Duke Energy, AT&T, automobile giant, Chevron, Verizon among others. He has also affiliated with the boards of governance of various companies which include Fountain House among many others.
Visit http://officialjeremygoldstein.com/ to learn more.