Often, large corporations find themselves facing a multitude of challenges. One of these challenges is remuneration, especially for their top level employees. Jeremy Goldstein, a long-serving New York City attorney has amassed close to twenty years of experience helping corporations overcome these challenges.
Large corporations are highly profitable business entities. As a result, they generate a lot of interest from diverse quarters of society. Most of the interest they generate is often from employees and shareholders, especially those invested for the long term. The investors are interested in seeing their investment grow in the form of an increase in share price while employees want to see that they are compensated well for the value they create in the organization. According to Jeremy Goldstein, an employee remuneration advisor, these organizations resort to pegging their pay on the Earnings per Share of their traded stock which is not always a correct position.
Jeremy Goldstein opines that there are both pros and cons of learning to EPS based remuneration. He observes that shareholders are more likely to prefer EPS based compensation so that executives do everything possible to grow the EPS and thus their investments will grow. Learn more: https://lawyers.justia.com/lawyer/jeremy-goldstein-1275422
On the other hand, this could give leeway to company executives to work towards manipulating their company’s share price illegal, to please their investors and to increase their pay. In addition, EPS based pay leads executives to focus on the short-term profitability of the organization and not the long-term sustainability of the organization.
With these varying opinions in mind, he advises that corporations should have the ability to look at both their profitability and sustainability. He recommends that corporations adopt performance-based pay. He opines that this form of pay leads to better working environments and cultures. In addition, with a proper system of accountability, company executives are able to focus on the longevity of the organization and seek ways to grow it and thus build a strong investment for shareholders.
Jeremy Goldstein has close to twenty years practicing as an attorney in the corporate world. He has a wide range of experience in the American corporate scene. He has participated and led teams in several corporate transactions in diverse sectors of the economy. He has been involved in telecommunication transactions such as the United Technologies acquisition of Goodrich, he has also participated in major banking and oil and petroleum industry transactions.
Mr. Goldstein is the founder of Jeremy. L. Goldstein and Associates, LLC. He is a highly regarded legal mind and listed in the Legal 500 magazine as such. Jeremy is a highly sought after speaker and published writer on matters, corporate governance and executive compensation. He also sits on the Board of Directors of Fountain House, which is a charity that focuses on helping those recovering from mental illnesses.