Incentive payments to employees are always something a company has to build into their operating plan for the year. Almost every company gives some form of incentive payment to their executives and employees. However, not all companies agree on how these incentives should be paid, and there is even more dispute happening between companies and their employees on this issue. Jeremy Goldstein, partner and founder of Jeremy L. Goldstein & Associates LLC has recently formed a resolution between several employees and their compensation committees on this very issue.
The main argument for performance-based pay, or paying incentives and bonuses based on how the company did in a particular period, are by far the most widely used form of incentive payment program for companies. This way, employees feel empowered and accountable for how well the company does. However, now that several scandals and frauds have occurred with executives of large companies, the public and employees are starting to wonder if these top-level individuals have too much power to alter the results of several key performance indicators that companies use for these payments. Also, performance-based pay has now been questioned because it is backward-looking and does not really indicate how well the company will do in the future.
Jeremy Goldstein came up with a solution that made all parties to this argument happy. He suggested that executives be held accountable for their actions that Boards and other employees at the company make sure these executives are making decisions for business purposes and not just to alter the performance metrics being used. He also suggested that compensation committees start to use forward-looking analyses in their calculations of employee bonuses.
This was a real win for Jeremy Goldstein and his firm, and he has helped several large companies come to compensation and incentive payment agreements over the years. Jeremy L. Goldstein has a strict focus on companies that are going through mergers, acquisitions, or other formative events in their structure in which debates and disputes like this can arise. Overall, he has helped several Fortune 500 companies and other smaller companies work with compensation committees to determine how compensation should be dispensed and how corporate governance should be handled.
Goldstein graduated from the New York University School of Business with his J.D. and the University of Chicago with his Master’s. He is currently the Chair of the M&A Subcommittee of the Executive Compensation Committee of the American Bar Association’s Business Section. He has worked tirelessly at his firm to make sure that employees and companies get agreements they can agree on.
To learn more, visit http://officialjeremygoldstein.com/.