There are a number of factors that sustain a stable economic environment for corporate entities. Jeremy Goldstein, a partner at Jeremy L. Goldstein & Associates, LLC, has firsthand experience with the bevy of problems created by attempts to sustain a viable corporate environment. Goldstein has significant experience working with corporate entities such as Bank of America, Goldman Sachs, Verizon, and many others. His unique perspective on the usage of Earnings Per Share and the debate surrounding it is sure to provide valuable insight to anyone considering EPS.
Is EPS Viable?
Generally, EPS is seen as a positive influence, and one of the most significant influences on a company’s stock price. Including EPS in a company’s overall pay structure is proven to provide increased success and raise their stock price. However, EPS is not without its disadvantages, as stated by Goldstein. The competitive nature of trading and shares can occasionally allow EPS to be leveraged in order to gain unfair advantages. Critics of Earnings Per Share have been quick to point out that, rather than its intended effect of providing collective control, it instead allows CEOs and executives the power to use misleading metrics to drive share sales. Moreover, performance-based pay scales have often been criticized for their unreliability and lack of stability.
Jeremy Goldstein’s solution is a compromise between stability and the benefits of performance-based pay scales. Rather than doing away with the incentives to succeed provided by pay per performance, he suggests that corporations look into methods for holding executives and CEOs responsible for destructive actions. Taking those steps would ensure that performance-based pay and its metrics are measured based on the long-term goals of a corporation, rather than short-term gain for the executives. These methods would ensure a stable platform for both corporate growth and consistent share growth.
Jeremy Goldstein is a lawyer, currently working as a partner with Jeremy L. Goldstein and Associates, LLC. He has worked in New York for a number of years, earning his J.D. from the School of Law at New York University. His clients have included cellular giants, banks, oil companies, and stockholder companies, providing legal services for matters of compensation and monetary legality.
Additionally, Goldstein has acted as a contributor to a number of law journals and has provided his expert opinions and veteran counsel on many current legal issues. Currently, he contributes to the NYU Journal of Law and Business, acting as a member of their professional advisory board. In addition to his professional work, he makes frequent donations to Fountain House, an organization dedicated to aiding those under the affliction of mental illness.
To learn more, visit http://jlgassociates.com/.