There are various factors that play a role in a stable and healthy economic environment that is also beneficial to corporations. Sustaining the economy has grown increasingly difficult as of late according to attorney at law Jeremy Goldstein. As an attorney based in New York he knows all too well the harm choosing not to address these factor can cause. Corporations are forced to choose between employee incentives and long-term investors in businesses. Either decision comes at a cost. This is why Goldstein is recommending a compromise for employee incentives.
His recommendation involves embracing incentive-based programs and performance-based programs such as Earnings per Share, or EPS. EPS is a more than acceptable alternative to employee incentives considering how they are handled now. Shareholder have been using EPS for years as it has a huge impact in stock price.
However, EPS does have its flaws. For instance, corporations and other entities may become greedy in shares and trading and decide to leverage EPS to their advantage. This would lead others at an extremely unfair disadvantage. This is something opponents of EPS point out time and time again.
Other opponents simply don’t believe the EPS can lead to a sustainable economic environment. The reason is they believe it can only lead to short term profitability due to things like favoritism in a corporation. Another reason why people are cautious of EPS is the fact that performance-based pay program are in constant flux. This leads to people shying away from using EPS to back stock exchange.
Jeremy Goldstein, aware of the valid points made by opponents of EPS, suggests a hand in hand relationship between anti- and pro-EPS proponents. By using this method Goldstein believes corporations can eliminate the factor of favoritism by finding a way to hold CEO’s responsible for their actions. This way the economic environment can be sustained and continue to grow.
About Jeremy Goldstein
Jeremy Goldstein was a former partner at the very large law firm of Wachtell Lipton. The practicing New York City lawyer left the firm to launch his own practice, Jeremy L. Goldstein and Associates, LLC.
Goldstein is an active member of the American Bar Association Business Section and has been named one of the top attorneys in the U.S. by Chambers USA Guide to America’s Leading Lawyers for Business.
To learn more, visit http://officialjeremygoldstein.com/.