The usefulness of compensation based on Earnings Per Share is currently a hotly debated topic in the worlds of business and finances. Jeremy Goldstein believes that he can offer a unique perspective that can benefit businesses, shed some light on the debate, and provide a solution to the issues presented by critics of the EPS method. As a highly-experienced business lawyer, serving high-profile clients such as Bank of America, Verizon, and Goldman Sachs, Goldstein is uniquely qualified to tackle the questions and controversy surrounding EPS.
Is EPS Worth the Risk?
To the layman, EPS likely seems too good to be true. Its benefits far outweigh any obvious risks, and its intended usage allows it to benefit both the company and its stockholders significantly. Additionally, it has been proven through intense study that using EPS-based methods reliably increase stock prices and make companies more successful. With all these benefits, one might wonder what the downsides are. While the benefits are quite clear, the drawbacks of EPS are far less obvious. Critics of EPS are quick to disparage EPC due to its ability to harm the company in favor of netting short-term gains for executives via metric manipulation. Often, CEOs and executives will abuse the system to drive up share sales quickly, and make bank, this has led to the reputation of EPS as unstable and unreliable.
Jeremy Goldstein believes that he’s found a solution to the problem, a solution that would pair the benefits of EPS with protection against instability. He notes that, in order for EPS to work reliably, the CEO and executives must be responsible if they abuse it in order to make short-term gains for themselves at the expense of the company. Holding them responsible would mean incentives to focus on long-term growth and success, which would promote stability and growth.
Jeremy Goldstein is a highly-esteemed business lawyer, currently working out of Jeremy L. Goldstein and Associates, LLC. He has served a number of high-profile clients, from oil and petroleum to stockholder companies and banks. He earned his J.D. by studying at New York University’s School of Law. His reputation as one of the best lawyers in the country speaks for itself, and his accomplishments further accentuate a long and successful career.
His career has given him a unique perspective that allows him to give educated opinions and provide advisory services. He is a member of the NYU Journal of Law’s professional advisory board and contributes to the journal regularly. He also contributes a significant amount of money towards Fountain House, a charitable organization for those struggling with mental illness.
Connect with Jeremy Goldstein on LinkedIn for more information.