Companies including large corporations around the globe have a highly critical question when it comes to employee and executive compensation plan. Is the EPS should be included in the pay structure metrics? Even compensation plan experts with decades of experience find the question difficult to answer. One of the major reasons for it is due to the benefits as well as demerits of EPS in the pay programs. However, Jeremy Goldstein, the renowned NYC-based attorney and corporate compensation expert, tells that the option is a good thing and drew a broad attention towards EPS and various thoughts around it.
According to him, EPS is one of the major drivers of the stock price in the share market, and it helps the investors to sell or buy their stocks and earn profits. When it is included in the total pay structure, it is found to be making companies more successful, per some latest studies. While it is looked like a highly useful system, the competitive nature of stocks and trading make companies benefit from unfair advantages. The critics of EPS focuses on the fact that it can create blind eyes to Chief Executives as well as cause favoritism. Contrary to the collective control, EPS gives significant power to executives that help them to skew accurate results for their benefits. Learn more: http://jlgassociates.com/
Jeremy Goldstein thinks that such a development is disadvantaging the interests of the shareholders and may even lead to legal issues. There are also other thoughts like the EPS system causes short-term profitability. It means that the system is not focused on sustained growth in the long run and often criticized as unreliable. While coming to EPS, Jeremy Goldstein thinks that a compromised approach is the best policy in the pay structuring. According to him, the executives of every company should be made accountable for their actions. Structuring these pay per performance programs around the long-term business goals of the company is the ideal choice to include them in the pay structure as well as ensure prosperous, sustainable growth of the firm.
Jeremy Goldstein is a highly respected attorney in the New York area and known for serving major corporations in their compensation committees. He is the founder cum partner of Jeremy L. Goldstein & Associates. It is one of the leading boutique law firms in the United States which is specialized in compensations committees of various management levels along with corporate governance matters.
Apart from that, Jeremy Goldstein gives specialized advise on various issues arising from sensitive situations and transformative corporate events. He also actively took part in some of the biggest acquisitions in the recent years and comes with an experience of almost 18 years. Goldstein earned his Law graduation from New York University.