There are a lot of problems with the bonuses and incentive programs that companies are currently using. While these programs may have worked well in the past, many compensation committees are starting to find that there are major flaws not only in how the programs are carried out, but in the logic of the program themselves. Because of this, companies are calling in experts like Jeremy Goldstein to help them reformulate their performance-based incentive programs and come up with an alternative that everyone can live with.
Performance-based incentives give employees and management bonuses when certain targets are achieved. These programs have been around for years, and many people agree that they do help to improve the results of the companies. However, with many corporate scandals happening in the past several years, shareholders and stakeholders are starting to wonder if management is altering results to make them look better the majority of the time just to get their bonuses.
Another question these individuals are asking is whether employees are really helping the long-term growth of the company, or if the metrics being used to calculate bonuses payments are actually making employees only work to make the short-term performance of the company look good while sacrificing long-term results.
Jeremy Goldstein has come up with a solution to this problem. Goldstein suggested that, firstly, shareholders and stakeholders take more precautions to make sure executives are being held accountable for their actions. Anything that these executives do should have a business reason, and they should not be accelerating revenue or holding off on expenses just to get their bonuses. Employees should also be forced to contribute to the overall, long-term well-being of the company to get their bonuses as well. Incentive programs should not simply be based on short-term successes.
Radical changes like this are the type of thing that Jeremy Goldstein and his firm, Jeremy L. Goldstein & Associates, have been bringing to companies large and small for the past several years. His firm focuses on companies going through major transition to ensure that they are on the right track for compensation packages and corporate governance. Goldstein has become a trusted advisor for several Fortune 500 companies, and he has even been named to the Executive Compensation Committee of the ABA.
Goldstein earned his J.D. from New York University School of Business, and he has been practicing in his New York-based boutique firm for years. Before Jeremy L. Goldstein & Associates, Goldstein worked at several smaller firms also working on mergers and acquisitions. He truly is an expert in the field.
Visit http://officialjeremygoldstein.com/ to learn more.