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How Incentives for Long-Term Management Backfire

Harvard Business Review

How could anyone object to such an effort? For example, one large technology company embraced a strategy to win through new digital businesses. Another company, in the agricultural technology sector, chose free cash flow as the primary long-term incentive measure. Eventually, the company’s share price nosedived.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

Those in Clinton’s camp include the venerable Aspen Institute, which produced a 2009 call to arms arguing that corporations’ short-term objectives corrode the “foundation of the American free enterprise system.” There are, not surprisingly, voices confidently positioned on both sides of the debate.

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