EPS, or earnings per share, is a scheme that is being implemented in several companies across the United States, and its primary objective is to give the employees working for the specific company some shares as an incentive. This is awarded on top of their regular salary. Recently, Jeremy Goldstein, a renowned lawyer based in New York City, wrote an article on why EPS is an advantage to the company and why everyone should be implementing it. According to his write up, the EPS platform, if it will be used within the corporate world, would result in more shares being circulated in the stock market. It would affect the flow of the price for certain company stock, and the movement can result in a profit increase.
Jeremy Goldstein also added that a company having an operating EPS platform would draw in more applicants who would want to work for them. EPS is an efficient way to motivate the employees, and because of the tendency of the share to change prices with volatility, the EPS incentive that they are receiving might yield a huge value, just like how cryptocurrency investors are doing in the present. Another argument in support for the EPS platform is the price of each share. Since the company is the one which would provide the stock portfolio or the total shares for their employees, tracking it would be easier and the price each share costs would be much lower compared to those who are already out in the market.
Aside from the advantages of using an EPS platform as an alternative to the incentive, Jeremy Goldstein also stated the disadvantages of the platform. He stated that bringing the EPS platform and integrating the incentive system of a certain company with it can result in a misunderstanding between the company and their employees. The employees might see this as a forced method driven by corporate greed, and that is the reason why the management should speak with their employees first before approving anything that could only result in conflict. If both parties agreed to the terms and conditions, it is the only time when they can implement what they have talked about.
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