How Incentives for Long-Term Management Backfire
Harvard Business Review
MAY 6, 2016
This is a classic story of unintended consequences — inadvertently short-circuiting long-term management — to the detriment of companies, investors, and the economy. As earnings goals became harder to hit with internal growth, the company used most of its money for share buybacks to achieve its three-year earnings-per-share goals.
Let's personalize your content