Many corporations have decided to stop providing stock options for their employees. Some made this decision to save money and conform to the changes that were happening with the market, however, the reasons may be more complex than most people think.
There are several problems that have been presented to employers which have caused them to make the decision to stop providing these options.
The first issue at hand is that the stocks may have the tendency to drop significantly, which makes it impossible for employees to utilize their options.
Many employees have become very cautious of the stock market and the recent structure in the economic downturn, which makes many companies re-evaluate their need for enabling stocks. Many others may shy away from the overall cost and the burdens that come with the financial instability.
There are always advantages to any situation, and there are actually advantages to following the ups and downs of the stock market. Most employees have a good understanding of the stock market and its options, which makes positive reinforcement for many looking to maintain their market value.
What this means is that the stocks have the same time limits and investment requirements that allow employees the option to fully invest with certain time limits in mind.
Jeremy Goldstein is a partner at Jeremy L. Goldstein & Associates, which is a law firm dedicated to providing legal advice to CEOs, management teams and many corporations in executive positions.
Mr. Goldstein was previously a partner at large New York law firm prior to opening his own law firm. He received his J.D. from New York University School of Law and also attended the University of Chicago where he obtained his bachelor’s degree.