According to Jeremy Goldstein, there are several elements that promote an organization’s sustainable economic background. In most cases, organizations are finding it hard to establish such elements that could otherwise lead to their better performance. More so, these organizational elements have led to the organization’s workers not to enjoy their incentives. Additionally, shareholders are also not left out when it comes to these elements because they are always finding themselves as losers at the end of the day. Jeremy Goldstein has previously worked in big organizations such as Verizon, Goldman Sachs, and Bank of America. Mr. Goldstein received enormous experience from these companies making him able to provide counsel on the use of Earnings per Share (EPS). Additionally, Jeremy also offers advice on several programs based on incentives as well as understanding on pay based on performance.
Jeremy claims that EPS is one positive thing that should be included when employees’ incentives are involved. In addition to this, shareholders are also influenced by the EPS mostly on the stock price. EPS motivate shareholders to either sell or buy a stock. Furthermore, EPS influences a company’s incentives to increase the amount of money every employee is paid. Besides, organizations become more successful after implementing EPS in their pay constitution. Hence, EPS is an important program to consider in a company strategy.
However, there is a lot of criticism regarding the implementation of EPS into the structure of pay within an organization. For example, critics claim that EPS will bring about favoritism and it may not always consider the individual performance of an employee. Besides, the critics argue that this program may allow managers and CEOs to have more powers in terms of taking into consideration whether the EPS metrics will be realized or not. In addition to this, the profits that EPS can bring to an organization will be for a short term and that it does not provide any sustainable means to encourage an organization’s growth.
Jeremy Goldstein works at Jeremy L Goldstein & Associates LLC, as a partner. Jeremy L Goldstein & Associates LLC is a law company dedicated to offering counsel to compensation committees, CEOs, and management teams on company compensation as well as corporate governance. He has been involved in several large acquisition transactions such as Goodrich by United Technologies, Merck/Schering Plough Corporation, Goldman Sachs, TPG/ALLTEL Corporation and many more.
Goldstein currently is involved in the American Bar Association Business Section as well as the Mergers and Acquisitions Committee chair of the Executive Compensation Committee. He often contributes to Fountain House, in their efforts to help individuals suffering from mental illness. Learn more: https://www.slideshare.net/JeremyGoldstein14/