Jeremy Goldstein is a New York City’s practicing attorney. He is the owner of Jeremy L. Goldstein and Associates, LLC. He studied law in the School of Law of New York University. For several years, Attorney Goldstein has worked with several large corporations handling issues of compensation and monetary legality.
From his many years of experience, Goldstein has observed challenges faced by corporations as they try to combine all the necessary factors to built themselves a sustainable economic environment. Issues are likely to erupt in such situations especially when the long-term investors and employees stand a chance to lose their incentives. Goldstein has as result been offering advice to businesses on the way to deal with the Earning per Share, EPS and the rest of incentive-based programs. He has also been very insightful in the debate concerning the use of incentive-based programs in performance-based pay programs.
EPS are generally good in the handling of employee incentives and are the greatest stock price influencer for shareholders. They have even been found to make companies successful when incorporated as part of the overall pay structure, seems to be advantageous in business strategy. Nevertheless, EPS may be leveraged by entities as an unfair disadvantage due to the competitiveness of the shares and trading market.
EPS opponents have actually pointed out that their use in corporations is capable of bringing favoritism towards companies’ CEOs. They claim that their metrics do give an allowance to CEOs and executives to influence the EPS metrics, interfering with the results accuracy in providing collective controls.
In addition, other opponents state that the EPS metrics are only concerned with short-term profitability, disregarding the company’s sustainability in relation to money reinvestment and the company’s corporate growth in future. Their dynamic nature and instability are also a big reason to worry about.
While this is the case, Goldstein invites both the advocates for EPS and those against EPS to make a compromise. Rather than discarding the pay per performance, which has its good role in bettering workplaces, a way be found to hold the companies’ executives and CEO’s responsible for their own conduct. Improving the pay per performance to ensure that its platform caters to the long-term goals, repeatable share growth, and sustainable growth. Learn more: https://www.slideshare.net/JeremyGoldstein14/