When it comes to compensation and corporate governance disputes, Jeremy Goldstein has become a well-known name in the New York area. He recently settled a large dispute over compensation and whether performance-based pay is really the best way to incentivize employees.
The argument for years has been that performance-based pay is a way to give employees ownership over their own raises and incentive payments. By giving an inventive or bonus that is commensurate with how the company did over the previous year or quarter makes logical sense. However, now, in the era of corporate greed and scandals, many companies are wondering whether payments on performance are really a good thing. Executives are able to alter their earnings-per-share or pretax income by simply moving capital projects around or accelerating revenue (which is illegal), and by doing so they might increase incentives and defraud their shareholders. Also, payment on performance does not look toward the future of the company. EPS and pretax income look into the past. It could be possible that a company has one really good quarter and all of the employees get an incentive payment, but due to poor management, the company is out of business the next year.
Jeremy Goldstein and his firm Jeremy L. Goldstein & Associates came up with a resolution that helps all parties, and they are hoping other companies follow suit. They proposed that incentive payments have some sort of forward-looking metric included in the calculation, such as forecasts or budgets. They also believe that Executives should be monitored and that companies should hold their Executives accountable for their actions while in office. In this way, compensation and incentive payments can be fair and accurate for all those involved.
Goldstein is no stranger to cases like this. He has mediated several disputes between compensation committees and employees of several different companies. Jeremy Goldstein has also been brought on as a trusted adviser to Boards and Committees of several Fortune 500 companies. By focusing his efforts on companies that are going through major shifts and transformations, Jeremy Goldstein can ensure that his clients are in the right hands as they find their new business strategies.
Jeremy Goldstein previously worked as a partner at Wachtell, Lipton, Rosen & Katz before creating his own firm. He earned is J.D form the New York University School of Business, and his Master’s degree from the University of Chicago. He previously attended Cornell University where he earned his B.A.
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