Creating a viable economic environment for corporations depends on many factors. Addressing these factors has been difficult of late. Jeremy Goldstein, a law practicing attorney in New York City, has firsthand experience of how long-term investors in businesses are losing incentives for employees. He offers advice on how to deal with Earnings per Share (EPS) and incentive-based programs. He also offers perceptions into the debate over applications of performance-based pay program.
EPS is a positive issue largely regarding dealing with the employee incentives. Eps is one of the prime influencers in the stock market. It offers an incentive for corporations to raise the amount which is paid out per employee. Recent statistics show that companies become more successful when they include EPS in their overall pay structure. Initially, EPS might seem an advantageous scheme to embrace a business strategy. Furthermore, the competitive nature of trading and shares sometimes enable entities to influence EPS to a prejudiced advantage.
Critics of EPS have indicated that use of EPS within a firm leads to discrimination among companies’ CEOs. Critics believe that these metrics give executives much power over whether meeting or not the targets of EPS. It should rather be a collective tool. These metrics eventually skew accurate results and lead to the misled driving of share sales.
Other EPS opponents state that these type of metrics aims at short-term profitability. This scenario means that EPS offers no support to a sustainable firm’s commercial growth and eventual reinvestment of the money. Moreover, performance-based pay programs, like EPS, are disapproved to be unreliable in backing stock exchange. Experts discourage focus on short-term goals like EPS, associated with performance-based pay. Companies will strengthen their share value by focusing on long-term investments.
Jeremy Goldstein vouches for a concession between the recommended activities of pro- and anti-EPS advocates. Companies can uphold pay per performance as incentives for improved workplaces and keep responsible executives. The incentives should match up with and measured against the companies’ long-term goals. This case offers a long-term platform for sustainable company growth with repeatable and measured share growth.
Jeremy Goldstein is a shareholder and founder of Jeremy Goldstein and Associates Law firm. It’s a law company committed to guiding corporations in administrative compensation and company governance matters, specifically on transformative corporate proceedings and sensitive circumstances.
He has legal practice in New York City for some years, for large companies on issues of monetary legality and compensation. He is registered as one of the top legal counsel selections in the USA Chambers Guide to Prominent Lawyers for Business of America. Moreover, he belongs to the American Bar Association Business Section and is the chairman of the Mergers and Acquisitions Committee of the Executive Compensation Committee.
Jeremy Goldstein holds a Juris Doctorate from School of Law of New York University and has a Master of Science from the University of Chicago. Additionally, he has a Bachelor of Arts from Cornell University with distinction in all course units. Learn more: https://profiles.superlawyers.com/new-york-metro/new-york/lawfirm/jeremy-l-goldstein-and-associates-llc/a958e5a0-ace7-44fa-8f53-da9d83c3b29b.html