Achieving a sustainable economic environment for corporations is no mean feat, as it usually requires some factors to be in pace. In recent times, things have become notably harder, as institutions struggle to address these factors. In some cases, such situations turn nasty, resulting in massive losses to the involved business. Jeremy Goldstein, a New York-based attorney, advises on how to manage employee incentives such as the Earnings per Share program (EPS) in such a way that business does not incur losses. Moreover, he offers insight into the interesting debate on the viability of performance-based contracts. Learn more: http://officialjeremygoldstein.com/
From a neutral perspective, EPS is a good thing. For shareholders, it is one of the significant influencers of stock value, as it determines whether they buy or sell their assets. Also, EPS usually influences companies to increase the amount that they disburse to each worker. As a result, firms that integrate EPS into their payrolls are more prosperous than those without. EPS may appear to be a profitable strategy, but due to the fiercely competitive nature of shares, it often leverages unfair advantage.
Adversaries of EPS suggest that the implementation of this program often results in favoritism and tolerance to undesirable actions by company executives. Furthermore, they believe that instead of availing collective control, these metrics give CEOs absolute power, allowing them to skew the results. This implies that the top brass in corrupt institutions can alter results in their favor, driving up their share sales.
Other antagonists point out that EPS cannot sustain a company in the long-run as it is specifically tailored for short-term interests. Such concerns also affect performance-based contracts, as they are always fluctuating and are therefore unreliable. A section of experts vehemently opposes the use of EPs and performance-based pays, and instead advocates for the integration of longer-lasting strategies.
Jeremy Goldstein stance on this matter is perhaps the best. He suggests that instead of doing away with EPS, the companies should punish leaders who skew the statistics.
About Jeremy Goldstein
Jeremy is a vastly experienced lawyer operating in the confines of New York. Since earning his Juris Doctor from the New York University School of Law several years ago, Jeremy has worked his way up and now owns a personal law firm. His unique contributions to the legal field are conspicuous and are backed with numerous appearances on prominent publications such as the Legal 500. Jeremy is also a member of multiple boards of corporate institutions across the US.