Jeremy Goldstein is a Man of Vision when it comes to Employee Compensation

Many companies often offered stock options to employees as a means of alternative and additional compensation. While the advantages were often worthwhile, a lot of companies and corporations have dispensed with the practice. There were several basics principles that led to the abandonment of the programs including the price of the company stock may drop making it impossible for employees to exercise their options at a reasonable profit, the options may result in increased accounting expenses making the associated costs more expensive than the financial advantages.

 

A draw back to the stock option plan is most employees would rather see higher salaries than additional compensation hinging on the economic health of the company. To some stock option compensation is preferable to better insurance coverage, higher salaries and equities because it is easier to understand stock options and is more evenly distributed than other types of compensation. Stock options give employees a sense of pride and personal investment while encouraging employees to work harder for more customer satisfaction, develop innovative ways to conduct business and attract more desirable clients.

 

The best solution to stock options is what is called a “knockout.” They work the same as stock options in principle, but if the stock price falls below a prescribed value, they are lost. To keep the system’s integrity, the down time must meet a time frame such as a week rather than a few hours. This option may reduce initial costs as options are valid for a shorter period of time. Knockout clauses often enhance the bottom line as the annual proxy gives a more accurate earnings outlook, as it lowers executive compensation figures as reported on the annual disclosure forms.

 

Knockout options do not solve all the problems, but they do seem to eliminate some of the larger obstacles associated with stock options as a preferred method of added compensation. As companies are abandoning stock options for other preferred methods such as knockouts, it is wise to understand that companies have to wait for all the old benefits to clear before stating something new and that could take 6 months or more.

 

Jeremy Goldstein is the founder of Jeremy L. Goldstein & Associates, LLC and focuses on advising compensation committees for large corporations. Before the founding of his own company, Goldstein was an attorney at law in New York City. His practice focused on offering advice to large corporations to help them better handle EPS (earnings per share). EPS’s often influence stock prices. Goldstein earned his Juris Doctor (JD) degree from the New York University School of Law.

 

Goldstein has worked with large corporations including stockholding companies, oil and petroleum companies, banking and similar financial institutions and cellular companies. Goldstein is considered one of the top attorney’s by the Legal 500, as well as the Chambers USA Guide to America’s Leading Lawyers for Business. Learn 1more: https://profiles.superlawyers.com/new-york-metro/new-york/lawfirm/jeremy-l-goldstein-and-associates-llc/a958e5a0-ace7-44fa-8f53-da9d83c3b29b.html

Jeremy Goldstein influence on EPS

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