The Battle for Incentives with Jeremy Goldstein

When it comes to performance-based pay, there has been little in the way of opposition for the past several decades. Many employees like the idea of them being able to alter how much they get paid, and when the company is successful, then the employee gets rewarded. This method of incentive payment has recently come under fire, however. Many opponents are stating that Executives are able to alter performance metrics too much and that these metrics do not really show how the company will do in the future.


EPS, or earnings per share, is one metric that is used to measure the performance of a public company. Many private companies will use metrics like pretax income or EBITDA. The fact remains, whether private or public, that Executives have an extraordinary influence over these metrics through the decisions they make every day. That means that if one executive wants to make three quarters of the year look good and only one look bad, then he might move several large expenditures into only that one quarter. To shareholders and employees, it looks like the company is doing well and just had one terrible quarter when in reality the company is doing poorly on average. Also, these metrics focus on the past. Paying out workers large incentives, argue opponents, for past performance is a dangerous precedent, as what they did in the past may not contribute to the longevity of the company in the future.


Lawyers like Jeremy Goldstein have been called in to make a resolution that will help both sides. In this debate, Jeremy Goldstein has proposed that they make Executives accountable for their actions, enabling shareholders and regulators to ensure that they do not move around expenses and revenues to fit their needs. Also, he has proposed that these programs have a forward-looking aspect and that they do not just focus on past performance.


Jeremy Goldstein is no stranger to cases like this. As Partner of Jeremy L. Goldstein & Associates, LLC, a boutique firm in New York, he has worked on countless compensation and corporate governance cases over the past several years. Goldstein and his firm focus mainly on mergers and other key dates in a company’s life in which things get shaken up and a mediator is needed to help the parties come to a fruitful resolution. He has built a success in this market, and he is one of the best-known lawyers in New York.


Jeremy Goldstein attended New York University, where he graduated with his J.D. degree. He previously earned his M.S. degree from the University of Chicago and his B.A. from Cornell University.


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