New York Lawyer Jeremy Goldstein Believes Compromise For Employment Incentives Is A Good Idea

If you are trying to create a sustainable economic environment for corporations, get ready for a battle. Jeremy Goldstein realizes that in this climate it is the type of battle where long-term employees and investors stand to lose the most. That is why Goldstein is always available to handle any of Earnings Per Share questions that corporate officials might have.


Goldstein also realizes that the Earnings Per Share (EPS) system can seem like a good strategy for most businesses to utilize. However, there is a competitive undercurrent that can give certain entities unfair advantage when it comes to the EPS.


Goldstein also pointed out that opponents of the EPS system are concerned that it leads to favoritism and a “blind eye” turned toward the CEO of said companies. They are also concerned that unethical CEOs could also skew the results for brownie points with investors. Is this unethical? You bet, and at the very worst it is downright illegal.


Opponents also have other concerns, including their belief that these metrics only work for short term profitability. In the long run, they claim, this incentive only hurts companies because it hinders a company’s chance for growth and reinvestment of money. They also feel these metrics are extremely unreliable. Goldstein believes that Some EPS incentives is a good thing, but not too much. In short, he believes that a compromise is in order.


Goldstein’s solution? He says that doing away with pay per performance would create more problems than it would solve. He believes that there must be a way to make CEO and other company leadership accountable for their actions. He also promoted the idea that pay per performance should be appropriately aligned with the long-term plan of any company. He believes that is the best strategy for long-term growth and pay-incentives that doesn’t compromise the ethics of the company.


About Jeremy Goldstein


Jeremy Goldstein is an attorney who specializes in money legality with large corporations. In the past, he has worked with cellular companies, oil companies, banking companies and stockholder companies. He earned his Juris Doctorate from New York University School of Law. He also enjoys philanthropy, regularly donating to Fountain House in their quest to help people afflicted with mental illnesses. Learn more:

Why Jeremy Goldstein Thinks Knockout Options Can Be Beneficial to a Corporation

Attorneys like Jeremy Goldstein, who specializes in part on advising on executive compensation issues, strongly encourage companies to offer stock options to employees. In addition to being easier to offer than equities, employees also understand that the worth of their stock depends on the company’s success. In this way, they contribute to morale and productivity.


To cancel out the risk of accounting headaches for employers due to dropping stock values, Jeremy Goldstein recommends what is commonly referred to as a “knockout” option. With this option, employees only maintain their stock if the value per unit does not drop below a set price for a significant amount of time, usually considered to be a week or more, within their term limit.


This can further contribute to productivity; employees who own stock will likely be more driven to further the success of the company so they can not only avoid losing their investments, but increase their value. Knockout options can also result in fewer accounting costs and more attractive annual earnings reflected to potential and current non-employee stockholders.


After spending 14 years as a partner at Wachtell, Lipton, Rosen & Katz, Jeremy Goldstein founded his own law firm, Jeremy L. Goldstein & Associates, LLC. In addition to executive compensation, he also advises on issues related to corporate governance matters. His legal services have contributed to several of the largest corporate transactions of the last 10 years.


Jeremy Goldstein received his J.D. from New York University School of Law in 1999 and has over 18 years of legal experience. He has also been a regular contributor to the Harvard Law School Forum on Corporate Governance and Financial Regulation over the past decade, and since 2008 has volunteered on the Board of Directors for Fountain House, a charity dedicated to mental illness recovery. Learn more: