Jeremy Goldstein Discusses the Merits of Performance-Based Pay
Trying to sustain an ideal environment for corporations can be a challenge, and can cause a number of issues. Jeremy Goldstein knows these issues all too well. With significant experience in business law, working for clients such as Goldman Sachs and Bank of America, he is perhaps uniquely qualified to offer his opinions on the matter. His views on Earnings Per Share are certain to shed some light both on its usefulness and on the reasons for the hotly-debated status of EPS.
Should You Use EPS?
At first glance, EPS seems to provide a significant amount in the way of benefits, both for employees and the company. Its influence on stock price is profound, and implementing EPS has been proven to promote success. But it isn’t all sunshine and roses, as critics are quick to point out. EPS is able to be leveraged in order to make unfair short-term gains, harming the long-term value of the company. Rather than providing control to the employees as it was intended to, EPS sometimes gives power over to executives and CEOs, allowing them to utilize misdirection to drive share sales in the short term. Additional criticisms include instability and a core lack of reliability.
Goldstein offers a solution that hopes to combine the immense benefits of pay per performance with an inherent stability and protection against manipulation. The solution is easier said than done, however. In order to make EPS work reliably, one would need to provide methods to hold CEOs and executives responsible for manipulation. If a company were able to accomplish this, it would ensure that their focus would remain on long-term goals and benefits rather than cash grabs by executives or CEOs, thus ensuring stability, and fostering corporate growth.
Who is Jeremy Goldstein?
Jeremy Goldstein of Jeremy L. Goldstein and Associates, LLC. is a veteran business lawyer. He had earned his J.D. at New York University’s School of Law. Additionally, he has served numerous prestigious clients, from cellular companies to banks and petroleum giants. His specialty is matters of monetary legality and compensation for employees and shareholders alike.
In addition to his legal work, Goldstein contributes heavily to law journals, including the prestigious NYU Journal of Law and Business as a member of their professional advisory board. He also practices philanthropy, making significant donations to organizations such as Fountain House, which aims to help those with mental illness.
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