Many corporations are increasingly finding it difficult to balance between factors that create a sustainable business environment. According to Jeremy Goldstein, such a situation can be critical as far as the interests of staff and that of long-term investors are concerned. From his rich industry experience, Jeremy has advised corporations on how to approach Earnings per Share, popularly known as EPS, and other employee incentive programs while embracing performance-based payment plans.
According to him, EPS is generally a good approach in dealing with employee incentives. It’s not only a great influencer in stock price but also enables businesses to increase whatever amount they pay out to each of their employees. Recent studies have established that businesses which have incorporated EPS into their payment structures are relatively more successful.
However, it’s noted that there are instances where companies have used EPS to favor a particular side of the business. There are opponents who have argued that particular metrics of EPS can only favor short-term profitability with no linkage to long-term sustainable growth and development. The performance-based pay structures are also criticized to be constantly changing hence unreliable. Larry Fink, a popular trade expert, has encouraged companies to keep their focus on sustainable long-term investments and strategies as a way of increasing their share value.
Jeremy Goldstein has recommended a comprehensive approach that businesses should consider when dealing with employee incentives. According to him, corporations shouldn’t shun pay-per-performance approach since it is good for employee working environment. They should instead design a system that keeps the top level management accountable. Pay per performance should also be linked to and measured against the business’s long-term goals. This way, Jeremy Goldstein believes companies will not only achieve sustainable growth but also enhance the growth of their shares.
Jeremy is a reputable attorney based in New York City, United States. He pursued his J.D from New York University School of Law. He practiced with a big law firm in the city for a number of years before establishing the Jeremy L. Goldstein and Associates, LLC.
Apart from legal institutions, Jeremy Goldstein has worked with oil and petroleum, banking, and stockholder companies. He is a member of the American Bar Association Business Section. In addition to being a leader of various business organizations, he is a renowned author and philanthropist.