Earnings Per Share Could Become a Thing of the Past Due to Abuse, but Jeremy Goldstein Believes it can be Saved
When determining the value of a company’s stocks, Earnings per Share (EPS) is one of the most important metrics to consider, if not the most important. However, while it does have clear advantages for stock valuation, it’s not without its drawbacks. EPS has a significant effect on stock prices, and is often a major deciding factor in stock transactions, so, naturally, some have found ways to abuse the system. Jeremy Goldstein offers an overview of the rampant abuse, as well as talking about how it can be stopped.
Can the Abuse be Stopped?
EPS almost seems to good to be true, and that’s because, at the moment, it is. The issue with EPS is that it’s prone to manipulation. Greedy CEOs and executives are able to manipulate EPS metrics, temporarily causing their valuation to skyrocket, and earning them a hefty sum before anyone can realize the deception. This eventually leads to major issues for the business, despite it being effective at lining the pockets of executives. Not to mention that many times, the manipulation is illegal.
Goldstein believes that it can be fixed, however, and his determination to find a solution has turned up what he believes to be the answer. The answer to the problem is almost deceptively simple: hold the executives and CEOs responsible for their destructive actions. However, such a move would likely have a profound effect. It would discourage this short-term manipulation, and encourage natural stock growth via means healthy for the business as a whole. This would benefit employees as well, providing a platform for stable and reliable growth.
Jeremy L. Goldstein
Jeremy Goldstein is one of the top lawyers in America. He holds impressive positions on the Legal 500 as well as the Chambers USA Guide to America’s Leading Lawyers for Business and has served numerous prestigious clients, from oil to banking and everything in-between. His legal abilities are undeniable, and reputation is pristine. He specializes in the field of compensation, including pay-per-performance and EPS. Learn more: https://twitter.com/jeremy_gold1
However, Goldstein’s contributions to the field of business law include more than simply being a skilled business lawyer. He has written for numerous journals on the topic of business law. His unique view on many legal issues is prized in the field, and his experience allows him to tackle the complex legal issues of the modern business world with ease. Moreover, Jeremy Goldstein is also known for his donations to Fountain House. Those donations serve to aid the charitable organization in their efforts to help people under the effects of mental illness.