The Earnings per Share, simply called as EPS, is a highly-discussed metric by the companies around the world whether to include it in the employment incentives or not. While some people say that it is an excellent option to be included in the performance of executives, others think that it would create problems to the organizational goals of companies. In the midst of the arguments, Jeremy Goldstein, an attorney with a few decades of expertise in structuring compensation for executives, puts more light into EPS and provides his accurate judgment that can help the companies to be focused on the performance. Learn more: http://jlgassociates.com/
Jeremy Goldstein welcomes EPS as a good metric in the employee incentives. It becomes the prime influential factor for the shareholders and helps them to make a decision on buying or selling of stocks based on the EPS. He says that it also helps the companies to give better incentives and pay structure based on the performance of EPS. Goldstein revealed that many companies became more successful by including EPS part of their pay structure, in the recent years. Though it has some significant advantages, EPS has some demerits as well. The competitive nature of company stocks and trading in the stock markets give undue benefits to the companies.
Additionally, it is generally disputed that EPS can create favoritism in the organizations as it gives greater power to CEOs. Instead of collective control, EPS can lead to significant influence for the executives that can even help them to skew the market results in their favor. It clearly disadvantages the interests of the shareholders on a long run and focuses on the short-term profitability. However, Jeremy Goldstein thinks a compromised stand is the best option in the case of EPS. He thinks that the executives should be made liable for their initiatives and actions. The pay per performance program should be measured with respect to the long-term goals of companies.
Jeremy Goldstein is a prominent attorney in New York who founded the boutique law firm named after him, Jeremy L. Goldstein & Associates. He has approximately two decades of expertise in mergers and acquisitions, executive pay, and corporate governance.
During the years, Jeremy Goldstein helped numerous companies in their executive compensation, mergers and acquisitions, and more. Some of his clients include Goldman Sachs, The Dow Chemical Company, NYSE Group, Bank of America, South African Breweries, and more. In the initial years, Goldstein collaborated with another law firm based in New York City, Wachtell, Lipton, Rosen & Katz.