Jeremy Goldstein warns against perils of runaway executive pay

9:04 am on June 9, 2017

Jeremy Goldstein has become one of the foremost authorities on executive compensation law in the United States today. After a 15-year career with the law firm Wachtell, Lipton, Rosen and Katz, Goldstein has gained formidable experience in his field, being widely recognized as one of the most knowledgeable experts in this legal niche.

 

Recently, Goldstein has taken the leap of faith to begin his own practice. Jeremy L. Goldstein and Associates is dedicated to helping small to medium business owners navigate the often tumultuous waters of executive compensation law. Goldstein has already gotten his name added to the Lawyer Referral and Information System, a system run by the New York State Bar Association that allows the easy pairing of local legal talent with the customers that need help in the courts.

 

One of the things that Goldstein strongly warns against, especially in the context of public companies, is the danger presented by discord between boards and executives, especially regarding the topic of executive pay. No issue has more explosive potential than a board that views its executive team as being grossly overpaid or otherwise benefiting from compensation packages that do not reflect the long-term goals of the company or its best interest.

 

Goldstein wars that tension between management and boards caused by executive compensation disagreements is one of the chief risk factors for public companies, both small and large, being targeted by activist investors. Such investors often look specifically for companies with high levels of disagreement between management and the board over executive pay and then find weaknesses in the corporate charter and documents related to compensation packages.

 

Goldstein warns that employees of such companies are potentially at risk of losing all of their compensation and associated benefits in the event of an activist take over.

 

Follow Jeremy Goldstein on twitter @jgoldsteinlaw1.