Jeremy Goldstein: Working with Corporation to Find a Solution

There’s been a huge trend swiping across the corporate world as of late. More and more companies are getting rid of stock options and looking for more preferable employee benefits. Employee benefits are something not a lot of companies think about until it’s too late.

Well actually, it’s never too late to start thinking about employee benefits. The problem is picking the wrong type of compensation method and then rushing to correct that mistake. Although every company can change compensation methods whenever it chooses, they should be careful before picking another so soon.

There is a risk of putting themselves in a deeper hole if they act too quickly. If any corporation already has a compensation method picked out and want to change, they should wait at least six months before switching to the new method. Acting too quickly can give them bad quarterly numbers, and that’s a lot scary than compensation methods.

The bigger question isn’t what compensation method should companies use; it’s why are they no longer using stock options? Stock options have been the corporate world’s go-to employee benefit for decades. From the time people wanted employee benefits, companies offered stock options.

Recent fears have inspired many companies to eliminate stock options and offer something different. The most popular choice seems to be equities, but that won’t last too long. As the IRS creates more rules pertaining to equities, it may become harder to offer equities than continuing to offer stock options.

The next option companies are turning to is just giving employees higher salaries or wages. It’s the next logical choice and it seems to be what people want. The only problem with higher wages or salaries is that it usually causes too many problems when it comes to equivalency amongst employees.

This is a huge discussion and the team supporting stock options is being led by Jeremy Goldstein. Jeremy Goldstein is a business lawyer in New York with over 15 years of experience in executive compensation and corporate governance. Many of his clients are coming to him to discuss employee benefits.

While his expertise is desirable, his entire firm handles clients with these same problems and more. If Jeremy Goldstein isn’t available, one of his partners can handle the same issues. Learn more: https://bestlawfirms.usnews.com/profile/jeremy-l-goldstein-associates-llc/overview/70073

The Simplified Solution of EPS in Employee Incentives by Jeremy Goldstein

Including Earnings per Share as a metric in the performance parameter of companies is a long-discussed topic among the executives, compensation committees, and management. The varied benefits and some major flaws of EPS are making people doubt about the effectiveness of the metric. This is where the expert opinion on Jeremy Goldstein, a compensation structuring expert with a few decades of experience, is highly valued and welcomed. He confirmed that including EPS in the compensation structuring could be treated as a positive thing. Goldstein identified that the metric became one of the biggest influencers in the stock market in deciding the price of the stock.

 

 

It helps the shareholders to buy or sell the stocks for a better deal and provides a holistic view on the performance of it. At the same time, the employees and executives of companies also get chances of competitive pay based on EPS. A recent study confirmed that including EPS in the pay structure helped many companies to be significantly successful. However, Jeremy Goldstein also revealed some of the concerns of the critics of EPS. According to them, the competitive nature of trades and stocks gives management to make unfair advantage using EPS as a metric. It has the capacity to cause favoritism and blind following behind the CEOs of firms.

 

 

Importantly, the metric gives significant powers to the executives rather than a collective control. These additional powers help the executives to skew results for the benefits of themselves, which is purely detrimental to the interests of shareholders. Goldstein said that it would create the downfall of share value and lead to regulatory issues in extreme cases. Another set of people think that it is not focusing on the long-term growth of the firm and focuses only on short-term profitability. Jeremy Goldstein took a compromised stand on EPS and asked the compensation committees to include EPS as a metric. Further, the executives should be held responsible for their executive actions, and the pay per performance options should be targeting long-term goals of the business. Learn more: http://clsbluesky.law.columbia.edu/author/jeremy-l-goldstein/

 

 

Jeremy Goldstein is also an attorney based in New York City with excellent exposure to compensation and corporate matters. He is the founder of Jeremy L. Goldstein and Associates, a law firm focusing on solutions including compensation, corporate affairs, compliance issues, and more. Goldstein collaborated with numerous companies from different sectors including oil companies, banking firms, cellular service providers, stockholder companies, and more.

 

 

Jeremy Goldstein is also associated with many major corporate mergers and acquisitions. Some of his clients include United Technologies, Sanofi-Aventis, Duke Energy, Goldman Sachs, The Dow Chemical Company, Verizon Wireless, SBC Communications Inc., Bank of America Corporation, and more. Goldstein earned his graduation in Law from School of Law – New York University.