A New Way of Incentivizing Employees: The Jeremy Goldstein Method

Compensation and incentive payments is always an interesting compensation when determining which companies use which metrics for payment. Most companies use performance-based metrics to pay out incentives and bonuses to employees. If the company performs very well for the year and meets targets, they will give employees a higher reward. However, this method of compensation has recently come under fire, and it has been up to seasoned lawyers like Jeremy Goldstein to mediate and resolve the disputes.

 

Several large companies have gone to battle over performance-based pay. While they agree that many employees find this form of incentive payment engaging and empowering, recent frauds and scandals by top executives have left them thinking about whether this type of incentive program leaves too much power in the hands of these top-individuals. After all, executives make decisions about how the company is going to spend its money every day, and if they want to wait to make next quarter profitable, they might spend money now that is not needed and slow down revenue recognition into the improper period.

 

Similarly, incentive payments based on performance only look at short-term goals of the company. Only this quarter or this year is what employees have to worry about, so why should they think about the long-term? In reality, the long-term goals are what keep the company alive and the shareholder’s value growing.

 

Jeremy Goldstein helped to solve this recent dispute. He suggested that all companies with performance-based pay programs also include some forward-looking metrics into their calculation of bonuses instead of just relying on past performance. This will make managers think more about the long-term instead of just cutting expenses for a little while and then ramping them back up later. He also suggested that executives be held more accountable for the decisions they make in office.

 

Jeremy Goldstein has been helping companies like this for years when determining which compensation and incentive program is the best for both parties. His firm, Jeremy L. Goldstein & Associates, has a strict focus on companies that are going through major transitions of power, mergers, and acquisitions, to help them determine the best programs and governance structures available.

 

Goldstein earned his J.D. from New York University, where he ultimately decided to call home. He recently worked for Wachtell, Lipton, Rosen & Katz, another boutique firm, before going out on his own. Through his expertise in business and his ability to find a resolution for both sides, Jeremy Goldstein has made a name for himself in New York as one of the best compensation lawyers around.

 

For more information, connect with Jeremy Goldstein on LinkedIn.