In order to sustain a positive economic environment in a corporation, there are many factors that must be addressed. Jeremy Goldstein, attorney at law, and expert regarding executive compensation, recently offered his take on the debate regarding incentive-based programs such as Earnings per Share programs. Over the last decade, Mr. Goldstein has been an integral part in many of the most significant transactions to take place amongst corporate juggernauts around the world, working directly with Goldman Sachs, Bank of America, and a myriad of cellular and oil companies. In the corporate world, Earnings per Share programs are generally met with positive regards by both employees and executives, as they heavily influence the price of stocks. Shareholders are driven to buy and sell stocks based on Earnings per Share and also influences companies to increase the pay rate for each employee. Companies that choose to implement Earnings per Share programs have shown to be more successful than those who do not over the last few years, yet there are still many detractors to this brand of incentive. Those who oppose Earnings per Share programs tend to believe that collective control is often sacrificed when these incentives are used, furthermore, giving executives and CEOs increased power, that could lead unethical, and even illegal practices. Detractors also point to their belief that those who champion EPS are overwhelmingly concerned with short-term projections for their corporations, instead of focusing on the long-term outlook. Earnings per Share and other incentives are often viewed by critics to be very fluid, changing at an alarming rate, and therefore making them unreliable. Jeremy Goldstein has been vocal about the need for compromise regarding incentives, stressing the point that, by pushing a culture of accountability for executives, performance will stay on par with the company’s long-term goals.
Today, Jeremy Goldstein is regarded as one of the foremost executive compensation lawyers in the United States, garnering recognition from reputable directories such as Chambers USA Guide to America’s Leading Lawyers for Business, as well as the Legal 500. He frequently contributes pieces to many of the world’s foremost law journals and is also the head of Jeremy L. Goldstein and Associates, LLC. Mr. Goldstein is a member of the professional advisory board of the NYU Journal of Law and Business, as well as the American Bar Association Business Section. He is also an active contributor to charity, regularly donating to Fountain House in an effort quell mental illness across the United States.
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