According to Jeremy Goldstein, a veteran New York City attorney, compromise is the best solution to the concerns people have about Earnings per Share and other types of pay programs that are based on performance. EPS is one of a number of factors which have the ability to create assist corporations to develop a sustainable employment environment. Goldstein explained that fights about employee incentive can potentially hurt employees as well as long-term investors. A former employee at Verizon, Goldman Sachs, Bank of America and several other major corporations, Jeremy Goldstein has a unique understanding of the role EPS and other employee incentive program often play.
Goldstein points out that EPS can have a positive influence on stock prices while helping shareholders as they decide whether to buy or sell a specific stock. This increases the likelihood of companies offering the employees increases in incentives. Making EPS part of the pay structure increases a company’s chances of success. On the other hand, opponents say using EPS can create an unfair advantage for those companies and leads to problems.
With access to EPS and other incentives, top executive often end up with more power than they should have and this encourages favoritism. It also enables executives to manipulate metrics results leading to share sales, critics say. Their position is, such actions are potentially illegal and definitely misleading and sacrifices long-term corporate growth, sustainability and reliability for short-term profitability.
According to Jeremy Goldstein, a good compromise is to devise ways for using EPS while requiring top executives to tie it to sustainable, measureable, repeatable share growth and the attainment of long-term corporate goals. A graduate of NYU Law School, Jeremy Goldstein has spent years in New York City practicing law with large firms and Jeremy L. Goldstein and Associates, his private law firm. He has experience working on monetary legality and compensation issues for oil and petroleum, cellular, banking and stockholder companies.
Jeremy Goldstein is near the top of Chambers USA Guides’ list of legal counsel in their selection of America’s Leading Lawyers for Business. He’s written well-received articles for leading law journals offering opinions and counsel related to current legal matters and popular law topics.
He is on the professional advisory board of NYU Journal of Law and Business. Jeremy Goldstein contributes to the American Bar Association Business Section and chairs the Mergers and Acquisitions Committee of the Executive Compensation Committee.
To learn more, visit http://officialjeremygoldstein.com/.