When it comes to corporate employment incentives such as Earnings per Share, or EPS programs, one prominent New York City attorney recommends that companies reach a compromise between anti-EPS and pro-EPS policies.
In a recent NYC Inquirer article, Attorney Jeremy Goldstein states that maintaining pay per performance incentives is basically a good policy, but CEOs should also be held accountable for their actions. As long as a company’s pay per performance policy is in line with its long-term goals, the value of its shares will likely grow repeatedly over time.
As mentioned in the NYC Inquirer article, there are proponents and opponents of EPS incentives as part of an overall business strategy. Proponents can point to recent studies that have determined that EPS incentives can help to make companies more successful, and opponents claim that the practice can lead to favoritism and complacency.
The opponents of EPS incentive programs believe that the use of these incentives can lead to inaccurate metric results being shown by company CEOs and high-ranking executives. These inaccurate or inflated metrics can be utilized to stimulate the sale of company shares.
Another point being made by opponents of EPS incentives is that these types of incentives are unreliable and focus on short-term goals, instead of more sustainable long-term goals.
A partner at the law firm Jeremy L. Goldstein & Associates LLC, Jeremy Goldstein is widely recognized as a leading expert in the fields of executive compensation and corporate governance. Mr. Goldstein received his J.D. from the New York University School of Law, a B.A. cum laude from Cornell University and an M.S. degree from the University of Chicago.
Offering a wealth of experience to his clients, Jeremy Goldstein was formerly a partner at a major law practice in New York before he started his own law firm. Due to his extensive knowledge regarding corporate compensation and governance, Mr. Goldstein is a frequent public speaker and writer on the subjects.
Jeremy Goldstein is a member of several professional legal committees and boards, and has been involved in many major corporate transactions through the years. This well-respected attorney is also a Board member and philanthropic supporter of a charity that helps people to recover from mental illness.
To learn more, visit http://jlgassociates.com/.