When it comes to corporations, they are many factors which hinder the creation of a sustainable environment for economic growth. At times, addressing these problems is a challenge, Jeremy Goldstein, an attorney, based in New York says these situations can lead employers and investors to lose their incentives if not addressed well. Having experience in large corporations like Bank of America, Verizon Wireless and SBC communications, Mr. Goldstein recommends new ways of approaching this menace and offers an insight of how to handle Earning per Share, performance-based pay and incentives- based programs.
Earnings per share are usually a positive thing when it comes to employees incentives, but when it comes to shareholders, it is typically a mechanism of influencing the stock price. This arrangement usually motivates the shareholders when buying or selling their shares. Moreover, it creates a chance for the company to increase the number of payments they make to employees.
Most antagonists of Earnings per Share program claims that this method leads to favoritism in the corporations while others claim that EPS method does not in any way support the corporate growth in the end. Performance-based pay programs have also received a lot of criticism due to its unreliability and being dynamic.
New York attorney, Jeremy Goldstein, recommends a new compromise between the anti-EPS and Pro-EPS proponents. He says that instead of getting rid of pay per performance programs, which are often used by corporate to provide incentives, a new way should be formed which holds the CEOs and other executives of the corporate liable for their actions. This is by ensuring that the pay per performance goes in hand with the companies goals. It will, in turn, provide a platform for sustainable long-term growth of the company and also repeatable and measured share growth.
Jeremy L. Goldstein is an attorney in Jeremy L. Goldstein & Associates, a law firm based in New York. He studied at New York University of Law and has managed to work for large corporate(s) as an attorney. This includes NYSE Group Inc, Cingular Wireless Corporation, Bank of America, Duke Energy, Goldman Sachs and The Dow Chemical Company.
Mr. Goldstein is also a chair in the Mergers and Acquisition Subcommittee of the Executive Compensation of American Bar Association Business Section which offers corporate compensation and governance issues. Also, he is a member of Professional Advisory Board of the Law and Business Journal NYU. Learn more: https://www.linkedin.com/in/jeremy-goldstein-26aa1b4