While Jeremy Goldstein may not be a household name, perhaps soon – it should be. Who is he?
Jeremy Goldstein is a parter at Jeremy L. Goldstein & Associates LLC, which is a law firm who’s practice centers around advising compensation committees. Along with advising compensation committees, the firm also advises CEOs, management teams and corporations in executive compensation and corporate governance matters. They’re the guys who swoop in and make everything easier for shareholders and employees when companies are doing big transitions or other sensitive situations.
This may look like a ton of big words that are made to confuse you, but in reality the bigger picture is very simple. To sum it up or for a refresher course, each person who owns a share in a companies stock or is an employee, is awarded a “compensation package”, which shows that person, the companies investment in them. A compensation committee are the folks who decide what that package looks like.
Jeremy Goldstein is more than qualified to complete the task. Having been partnered at Wachtell, Lipton, Rosen & Katz prior to establishing his very own firm – he’s also been included and involved in dozens of the largest corporate transactions of the past ten years.
There is an incentives-based program called Earnings per Share, or EPS, which has it’s benefits as well as it’s downfalls. Like many programs, it works best when it’s used correctly but there are times when it’s not. While the program does have fans, it also has its opponents.
On a positive note, EPS is something that motivates shareholders to buy and gives incentive for companies to raise their employees pay. Companies that include some form of EPS as part of their structure are more successful but there are downsides. This may be beneficial in the short-term, few see the long-term with ease. Combined with the idea of favoritism within the work place or metrics being skewed by powerful CEO’s, some feel EPS should be apart of their companies system.
Jeremy Goldstein offers a solution that can satisfy all points of view. He recommends that companies incorporate an accountability system that holds CEO’s or executives responsible for their actions, rather then doing away with EPS all together. That’s not all. Jeremy also says to align the pay per performance system with long-term goals of the company to ensure the longevity of company growth, while meeting the needs of everyone involved.
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