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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Companies deliver superior results when executives manage for long-term value creation and resist pressure from analysts and investors to focus excessively on meeting Wall Street’s quarterly earnings expectations. It started with developing a proprietary Corporate Horizon Index. This has long seemed intuitively true to us.

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4 Ways CEOs Can Conquer Short-Termism

Harvard Business Review

Bertolini observed that many of his peers had been promising 15% earnings per share (EPS), even during the financial crisis of 2009. ” Bertolini and his team studied the industry and concluded that a reasonable target was no more than 6% EPS. . Bertolini knew that such unrealistic targets would create problems.

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