Jeremy Goldstein Helps with Compensation Programs

Compensation is tough for even the most experienced companies and HR representatives to get right, especially when that compensation involves incentive payments. That is why many companies turn to the expertise and consulting of firms and lawyers like Jeremy Goldstein. Recently, Jeremy Goldstein and his firm, Jeremy L. Goldstein & Associates, worked with several companies to solve a dispute around these incentive programs.

 

Historically, many companies have always gone with performance-based incentives. These are programs that reward employees with bonuses in years that the company outperforms its expectations. This rationale for incentive payments seems to make sense, but after a few corporate scandals by greedy executives, many shareholders are starting to wonder if performance-based incentives are really the way to go.

 

Not only do executives hold all of the cards when it comes to incentives in programs such as this, but rewarding employees for accomplishing such short term goals may actually hurt the company in the long run. When executives and employees know that they will be given a large bonus if they reduce their expenses in a given quarter, they may be inclined to simply put large expenses off and save them all for one period instead of spreading them out. This causes uneven earnings and can hurt the company.

 

Jeremy Goldstein came up with a solution to this problem that promises to help both sides get what they want. First of all, he acknowledged that several executives in the past have acted unscrupulously. He strongly believes that corporations and shareholders need to work harder to keep their executives accountable for all of the decisions of the company. Secondly, he wants these companies to implement a new forward-looking and longer-term piece to the incentive payout, making sure that employees are not altering results in the short term that might hurt the company in the long-term.

 

This is not Jeremy Goldstein’s first time mediating a dispute like this. In fact, Goldstein and his firm have worked on hundreds of compensation and corporate governance cases just like this one. He created his firm to work with companies going through major transitions and mergers, areas in which they need the most help ensuring their compensation and governance structure is aligned with the company’s ultimate goals.

 

Goldstein has worked at several firms to help these firms. He has also been appointed as the Chair of the M&A Subcommittee of the Executive Compensation Committee for the American Bar Association, a testament to his success and knowledge. Goldstein graduated with his J.D. from New York University, and he continues to serve the New York area to this day.

 

For more information, connect with Jeremy Goldstein on LinkedIn.

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