In the United States of America, it’s been a common refrain that executives are being paid far too much, given the amount of work they actually do. This is often pointed as one of the chief reasons that the wealth gap in the United States has continued to grow at a tremendous rate over the last 60 years.
But one lawyer sees the other side of that coin. Jeremy Goldstein has made a name for himself as one of the most skillful executive compensation lawyers in the United States today. Over a 15 your career working with law firm Wachtel Lipton, Goldstein has handled some of the largest mergers and acquisitions in recent corporate history.
This has given Goldstein a unique perspective on the true uses and abuses of executive compensation. According to Goldstein, executive compensation plays a crucial role in properly incentivizing competent execution of top leadership roles within America’s corporations. Without the ability to adequately compensate employees, America’s corporations would be unable to generate the continuous gains in productivity and profitability that it had seen over the last half-century. Without adequate executive compensation, America’s economy would stagnate and decline.
Goldstein, throughout his career, has seen the ravages of activist shareholders, who have laid waste to the best thought-out executive compensation plans. Goldstein recommends modern executives, business owners and other people in a leadership position within Americas corporations that they should carefully guard against attacks by shareholder activists that are centered around discord among the shareholders and the board regarding executive compensation.
Goldstein recommends that all executives maintain closer relationships and as solid a rapport with shareholders and the board as is possible. He also recommends that all corporations use a carefully defined, highly detailed corporate compensation protocol that is closely aligned with corporate goals of growth and creation of shareholder value.
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