Many companies today are thinking about the best incentive that they can give their employees, and earnings per share (EPS) is one of the options being considered by the majority of American companies. According to Jeremy Goldstein, a New York-based lawyer and blogger, EPS outweighs advantages over disadvantages, and he thinks that it is one of the best incentive options available to companies in the United States today. He has written and published an article regarding EPS, citing the advantages and the disadvantages of this incentive. He believes that most of the employees can benefit from EPS because of how flexible the incentive option can be, but the companies should still conduct studies to see how they can balance out giving EPS as an incentive.
According to Jeremy Goldstein, companies which are offering EPS as an incentive would drive the prices of the shares higher. This would mean that the company will be able to project themselves high in the stock market, and they will be able to drive more investors to pour out their investments in the business. EPS would be beneficial both for the employees and the company that they are working for because it would drive the value of the company to a whole new level. Aside from the change in the prices of shares, it would also do something good for the productivity of the employees. It has been proven that with EPS, employees will be more active at work, finishing the tasks they would have to do. It would also give them a positive outlook because of the changing prices of the shares.
On the other hand, giving an EPS as an incentive has its disadvantages. Based on the article written by Jeremy Goldstein, it seems like EPS will promote favoritism inside the company, and it would also lead some of the employees to complain because of how the company would favor a share over real cash. Overall, Jeremy Goldstein believes that proper education on how EPS can be handled should be taught to the employees. In the end, holding stock on hand is just as valuable as having cash.