Jeremy Goldstein is a lawyer and a writer based in New York City, and in one of his recent articles, he explained about employee benefits and some alternatives to it. Companies today are thinking about the alternatives that they can provide to their employees when it comes to benefits. Most companies today are providing cash incentives, but there are some who thinks otherwise and provides alternatives to cash incentives. However, Jeremy Goldstein pointed out that the most viable alternative to cash incentives is the EPS platform, also known as the earnings per share platform. This system of employee incentive is based on the company’s ability to provide their employees with the company stocks, and allowing them to trade it for cash whenever they want to. It would also give the employees a chance to learn more about trading and how the stock market works. Learn more: http://jeremy-goldstein.wikidot.com/
Based on the analysis of Jeremy Goldstein, the EPS platform is the best employee incentive out there, aside from cash incentives. He pointed out that the EPS platform gives the employees a chance to have a flexible incentive, compared to other alternatives that could not change in value once they are given to the employees. Jeremy Goldstein, however, stated that the EPS platform has its advantages and disadvantages. As he outweighs the platform’s advantages and disadvantages, he found out that the benefits of having an EPS platform as a form of incentive outweighs its disadvantages, and he prompts the companies to shift to this kind of platform.
What happens to company stock when it is given as an EPS is that the value of the company gradually goes up, and it would help the investors who are buying stocks from them. It would also change the company’s image among the investors, showing them that they are a profitable company and that the investors should pour out their money to buy more stocks. It is beneficial to the company and its investors, and because more people will now be buying their stocks, the company would be able to provide more EPS to their employees and drive the value upwards. Another reason that Jeremy Goldstein pointed out is the psychological effect of providing an EPS to the employees as a form of incentive. Companies have noticed that employees who are receiving an EPS incentive tend to be more productive inside the office. They are expecting the reward after a hard day’s work, and because of the changing value of the incentive, the employee can earn a lot if they just study how the whole system works out. Jeremy Goldstein added that with the EPS platform being in effect in some of the largest companies on the planet, the trading industry would greatly benefit from it.