article thumbnail

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. Of these, the last indicator is perhaps the most likely to accurately capture a company’s short-termism.

EPS 8
article thumbnail

The Authenticity Trap for Workers Who Are Not Straight, White Men

Harvard Business Review

Moving up in an organization depends on looking and acting like a leader, on being perceived as having “executive presence” (EP). According to research from the Center for Talent Innovation (CTI), EP constitutes 26% of what senior leaders say it takes to get to the next promotion.

EPS 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Incentives for Long-Term Management Backfire

Harvard Business Review

In the five years since the advent of Dodd-Frank regulation, corporate governance groups, with their policies requiring at least half of long-term incentives to be “performance-based,” have pushed companies to replace options with multi-year, performance plans. In effect, the pay plan rewarded them for sacrificing the long term.

article thumbnail

Business Needs to Do What Government Can't

Harvard Business Review

The oft-cited CEO of Unilever, Paul Polman, announced the company's Sustainable Living Plan , saying to investors: "if you don't buy into [our long-term value model], I respect you as a human being, but don't put your money in our company.". Zeitz is also rolling out the EP&L across the holding group PPR. Breakthrough Institutions.

EPS 8
article thumbnail

The 6 Ways Business Leaders Talk About Sustainability

Harvard Business Review

Crucially, he concludes that our unconscious mental frames “shape the goals we seek, the plans we make, the way we act, and what counts as a good or bad outcome of our actions.” The focus of people using a resources frame to understand sustainability is often on waste reduction and technological innovation.

Morale 8