Jeremy Goldstein Referees The Pros And The Cons Of EPS

There is a raging controversy going on right now in the business world. It is a question of whether EPS, the acronym for Earnings per Share, is good or bad. There are proponents of EPS that say it is a boon to investors in a company and its employees. On the other side of the fence are its detractors, saying it will spell doom to the company and the country’s economy. Goldstein practices law in New York City and has the broad experience that he can use to determine if EPS is really helpful or not.



Some of its proponents of EPS say that it can be the factor that will encourage companies to give their employees pay hikes. EPS could also be an incentive for company stakeholders to buy or sell their shares, they added. Considering these two factors, it seems that EPS can really spell the success of a business entity.



On the other hand, detractors of EPS claim that there is a dark side to the system. They say that due to the highly competitive nature of shares and trading, EPS could be leveraged to bring unfair advantages. Furthermore, EPS opponents say that this tool will encourage favoritism on the part of the employers and blind them from seeing the real picture. If company CEOs use this system wrongly, they will be able to paint a financial picture that will show the results that they want, but not the actual situation – in order to increase company sales.



This situation underlines the difficulty in solving the sustainability of a business entity. And this is present in nearly all the businesses operating in the country today. But it seems Goldstein and his associates have crafted a solution to this quandary. He proposes a compromise that will help the companies sustain their operations and ensure the continuous and increasing flow of income, while making their employees happy with their well-deserved salaries.



Goldstein has been lawyering for a number of large banks including Goldman Sachs, Bank of America and big telecom conglomerates like Verizon. He has provided these companies with valued legal advice about their utilization of EPS and other programs based on employee incentives and how these tools can affect a company’s profitability and sustainability in a positive direction. He says it will be better if companies harmonize their incentive programs with their long-term goals. Goldstein also recommends for companies to hold their executives accountable for the actions they take, instead of just removing their EPS programs outright.


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