Jeremy Goldstein Doesn’t Support Ending Pay Per Performance

In order to create a sustainable economic environment, many corporations have had to surmount a myriad of obstacles, making it more difficult than it was in the past. Jeremy L. Goldstein, an executive compensation lawyer practicing in New York City, has many first-hand accounts of the devastation that a volatile economic environment can cause, where long-term investors, as well as employees, are affected the most. As an expert on executive compensation and corporate governance, Jeremy Goldstein has been actively involved with companies such as Goldman Sachs, Bank of America, and Verizon, helping to oversee many of their most significant transactions. In the corporate world today, Earnings per Share is one of the biggest agents of influence regarding a company’s stock price. Shareholders are driven to buy or sell based on Earnings per Share, and companies are also given incentives to increase the salaries of their employees. Earnings per Share are typically regarded in a positive light by many corporations, as recent studies have concluded that there is a direct correlation between implementing this practice and higher rates of success. Despite the overwhelming positives that Earnings per Share provide for corporations and employees, many detractors point to the fact that implementing this practice can often lead to unethical or illegal practices due to the control that it allows its executives. Many opponents of Earning per Share highlight the fact that metrics can be skewed by company executives if they so choose, as well as the fact that these metrics are most beneficial for the short term. Because of the ongoing debate within the industry between proponents and detractors of Earnings per Share, Jeremy Goldstein believes that compromise, instead of ending pay per performance, is the most viable solution. In Mr. Goldstein’s estimation, holding executives and CEO’s accountable for their actions regarding Earnings per Share will create a culture that ensures the long-term projections of a corporation are on par with pay per performance.

Jeremy Goldstein is an executive compensation lawyer practicing in New York City, as well as the head of his own firm, Jeremy L. Goldstein, and Associates, LLC. He is a member of the professional advisory board of the NYU Journal of Law and Business, as a frequent donor to charities, such as Fountain House, which focuses on helping people overcome issues resulting from mental illness. Mr. Goldstein received his J.D. from New York University School of Law.

 

To learn more, visit http://jlgassociates.com/.

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