Jeremy Goldstein has made a name for himself in the Greater New York Area as being one of the best mediators, lawyers, and corporate counselors around. Goldstein specializes in corporate governance and compensation law, and he has been working with thousands of employees and corporate executives to make sure that everyone gets what they deserve as it comes to compensation. One of the most recent cases that Goldstein handled was about performance-based pay and whether this type of pay is really he best for companies and their employees.
Performance-based incentives are bonuses that are paid to employees of a company for good operating results over a given period. Some of the most commonly used metrics for performance-based incentives are margins, income, and earnings-per-share, or EPS. The logic is that if a company’s results are good, that means the employees did well on improving sales and cutting costs and they should be rewarded. Now, some opponents of these programs are coming out of the woodwork and are stating that performance over the short-term may not be the best way to incentivize employees.
While many employees view bonuses tied to performance of the company as an empowering and engaging way to do things, the fact remains that executives have a lot of discretion and power over the activities of the company. Not only that, but these metrics are often based on a year-long period or shorter. Bonuses could be paid out for a good quarter, when in reality that company does not have promising prospects for the future. Should employees really be incentivized and paid out bonuses when the company does not have a chance of surviving?
Jeremy Goldstein stepped in on this case and stated what he believes to be the best course of action. Goldstein stated that companies should start to have a better accountability program for their executives. All executives should be able to explain exactly why they made certain decisions and why those decisions are in the best interest of the company. Not only that, but incentive programs should be forward-looking instead of backward-looking. New metrics should be determined for paying out employees. Learn more: http://officialjeremygoldstein.com/published-works/
Jeremy Goldstein has been practicing this type of law for years at several different firms before he founded Jeremy L. Goldstein & Associates. He graduated from the University of Chicago with his Master’s shortly after Cornell, and he went on to New York University School of Business for his Juris Doctor. He will continue to fight through these debates and make sure everyone is rewarded for the work they do and that the company is making the right decision for their compensation policies.