When it comes to mediating and working with disputes between companies and employees on compensation, nobody does it better than Jeremy Goldstein. Goldstein and his firm, Jeremy L. Goldstein & Associates LLC have been working relentlessly to clear up compensation issues between companies and employees to make sure that everyone wins. One of the most recent topics that Jeremy Goldstein has been working on is the backlash against performance-based compensation that is running rampant right now.
Due to a few unscrupulous executives from a few high-profile companies defrauding their shareholders by incorrectly and fraudulently reporting their earnings to bolster their incentives, pay-for-performance has become something that many companies are reconsidering. In the past, there would be no issue if the company wanted to base its bonuses to all employees on its financial performance for the year. However, many started to argue that executives now have too much power to change the bottom line to suit their needs.
Not only this, but many are also wondering whether performance-based bonuses were ever a good idea. While it is true that employees feel some accountability to the company’s performance with these incentive programs in place, the fact remains that many of the metrics performance is based on are short-term and backward-looking.
With these problems fresh on everyone’s minds, Jeremy Goldstein came up with a new and innovative solution that incorporates a piece of each side’s arguments. First of all, he argued that companies should increase the level of scrutiny put on executives to make sure the decisions they make for the good of the company. Second, there should be a forward-looking, long-term piece to every incentive plan. Without this, employees will only focus on performance in the near future, and some might make sacrifices now to take on larger expenses later. None of this actually contributes to the well-being of the company.
Goldstein has always had a good handle on how businesses are supposed to run and how they can ensure longevity. He has worked with several Fortune 500 and private companies to bolster their economics and structure their compensation plans to make sure they work for everyone. His firm, Jeremy L. Goldstein & Associates, has been in business for several years and is focused on working with large companies to make sure their corporate governance structure is appropriate and their compensation packages work toward the company’s ultimate objectives. Goldstein will continue to put his J.D. to work to make sure that employees, shareholders, and the company alike can all agree on a solution.
Connect with Jeremy Goldstein on LinkedIn.