Jeremy Goldstein is a partner with Jeremy Goldstein & Associates LLC. It’s a boutique law firm that specializes in advising compensation committees, CEO’s and management teams. Goldstein recently gave advice on how to handle Earnings per Share (EPS).
As employee and shareholder incentives, EPS’s are generally a positive thing. They are what motives shareholders to buy or sell. They also give employers incentives to increase employment pay. Recent research has confirmed that EPS’s are part of what tends to make companies more successful. Even though EPS’s appear to be very advantageous, entities can also easily supplement it to their own ulterior motives.
Those who oppose the whole idea of EPS’s argue that they allow for favoritism of CEO’s and skewing of the metric results. Others argue that they’re only good for short-term profitability and don’t provide any outlet of long-term reinvestment. Performance-based programs are often criticized for forever changing and being unreliable as a result. As a result, companies are advised to start thinking long- rather than short-term to back up their investments.
Goldstein recently recommended a compromise between both the pro- and the anti-EPS argument. He argued that instead, companies should focus on finding ways to hold CEO’s and executives more accountable for their actions rather than completely doing away with pay per performance. Ensure that pay-per-performance measures up to the company’s long-term goals. This will provide a better outlet for both share growth and sustainable long-term growth.
Jeremy Goldstein has been practicing in New York for many years now. He earned his J.D. degree from the New York University School of Law. He started at a larger firm called Wachtell, Lipton, Rosen & Katz before branching out to his own smaller firm. Learn more: https://lawyers.justia.com/lawyer/jeremy-goldstein-1275422
Aside from having a lot of experience working with large companies such as Bank of America and Verizon, he has also worked with many cellular, banking, oil and stockholder companies. He has been listed as a top selection for legal counsel in Chambers USA Guide to America’s Leading Lawyers for Business and Legal 500. He’s a regular contributor to the NYU Journal of Law and Business as a member of their advisory board. He also regularly writes numerous articles for various other journals of Law.