Jeremy Goldstein is a very experienced attorney at law in the New York City area. He specializes in corporate compensation. He also writes about compensation practices and how best to manage them from a legal standpoint. One of his recent articles delved into the issues that exist when companies try to establish a sustainable economic environment at their firm. This can lead to a battle between providing employees incentive for their hard work being played against long-term investors who mainly want to just maximize their returns.
One incentive-based program that Jeremy Goldstein has a lot of experience with is using Earnings per Share, also known as EPS, to partially compensate employees. He says that in general this is a positive thing for companies to do because EPS is one of the things that heavily influences what the company’s shares are worth. It’s good for the employees, he says, because they get paid more. It’s also good for the company because it incentives employees to increase the value of the company they work for.
The one big problem though, he says, is that using EPS for employees can result in the executives of the company, particularly the chief executive officer, having far too much power in deciding what metrics the company will use to determine EPS. This can skew things if they try to use EPS to drive share sells. This is something that Jeremy Goldstein calls misleading if not outright illegal but some executives will still try it.
The answer, he says, is that a system must be put in place at companies that will hold executives responsible for what they do in regards to EPS. This will both shareholders and employees and result in long-term growth that is stable in nature. It will also result in share growth that can be both reasonably measured as well as repeatable.
Jeremy Goldstein is the partner of his law firm, Jeremy L. Goldstein & Associates, LLC. He has a boutique law firm that focuses primarily on executive compensation, especially during sensitive situations such as a proposed merger & acquisition transaction.
Over the years, Jeremy Goldstein has been recognized by organizations in the legal industry a number of times. The Chambers USA Guide, for instance, named him as one of the nations top business lawyers as did The Legal 500. He has worked with some of the largest multinational corporations in the world like J.P. Morgan Chase & Co., Miller Brewing Company, and SPC Communiations, Inc.
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