Category: New York
As a lawyer, Jeremy Goldstein has worked with a bunch of large companies such as Verizon, United Technologies, NYSE group, Goldman Sach, Bank of America, among others, in conducting corporate transactions as well as Compensations. This has given him tons of experience in these matters and he understands the challenges that corporations are likely to experience as they try to combine all the necessary factors in order to build for themselves a sustainable economic environment. This is not an easy task and may sometimes cause havoc where employees and long-term investors may be at a risk to lose their incentives. Learn more: http://officialjeremygoldstein.com/published-works/
For that matter, Mr. Goldstein offers advice to corporates and individuals about how they should handle the Earnings per Share, EPS use, and various other incentive-based programs. Moreover, he shares insights on the discussions concerning their use in performance-based pay programs.
EPS have several positive things especially looking at the way they handle employee incentives. They are a great influence on stock price for shareholders, driving them to sell or buy their shares. EPS also give companies an incentive to make an increase in the amount they pay out per employee. When the EPS are incorporated in the company’s overall pay structure, studies show that they increase the company’s success. Though EPS are advantageous to add in a business structure, they may seem as a disadvantage, especially due to the competitive nature of trading and shares which can allow them to be leveraged by entities.
Those opposing EPS have highlighted the possibility of EPS used in corporations bringing favoritism to the companies’ CEOs. This makes them believe that the CEOs and executives are, therefore, amassed a lot of power allowing them to screw the results accuracy and making it impossible EPS to provide collective control.
Other opposers say that the EPS metrics are affiliated to short-term profitability. They, therefore, fail to provide sustainable ways in which the company can support reinvestment and growth for the future. They add that these programs also tend to be dynamic and unreliable.
According to Jeremy, the remedy is for both the opposers and proposers of EPS to employ a compromise. Since they are doing well with incentives, a way should be devised to make CEOs responsible for their conduct, while the EPS are improved to meet both long and short-term goals.
Jeremy Goldstein is a New York City practicing lawyer and the owner of Jeremy L. Goldstein & Associates, LLC. He has authored a number of journals and belongs to the professional advisory board I the NYU Journal of Law and Business.
He attended New York University School of Law. He worked as an associate in the Shearman and Sterling law form as well a Partner in Watchel, Lipton, Rosen, and Katz law firm.