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Dress for the Job You Want?

Harvard Business Review

within large corporations) identified when asked what contributed to, or detracted from, "executive presence" (EP) at their firm. Indeed, half the women surveyed and 37% of the men considered appearance and EP to be intrinsically linked; they understood that if you don't look the part of a leader, you're not likely to be given the role.

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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. How could anyone object to such an effort? .”

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?Numbers Show Apple Shareholders Have Already Gotten Plenty

Harvard Business Review

Whether done as a DOMR or ASR, the purpose of such buybacks is to give manipulative boosts to a company’s earnings per share (EPS) to help drive up its stock price. I asked precisely that question in a paper, “ Apple’s Changing Business Model ,” that I published in September 2013, before Icahn had begun to dictate Apple’s financial policy.

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Yes, Short-Termism Really Is a Problem

Harvard Business Review

With Hillary Clinton’s tax proposals to encourage longer-term investing , the debate over whether American business is too fixated on the short term has moved from the dimly lit offices of earnest policy wonks into the klieg lights of U.S. primary season. Executives respond by underinvesting in long-term growth and buying back stock.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

Earnings-per-share (EPS) growth: Difference between EPS growth and true earnings growth. We hypothesize that long-term companies are less likely to overindex on analyst metrics like EPS and less likely to consistently take actions (such as share repurchases) that boost EPS. Where Do We Go from Here?

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What Should U.S. Companies Do If Congress Ever Passes a Tax Holiday?

Harvard Business Review

Some companies buy back shares to boost earnings per share (EPS) by shrinking the number of outstanding shares. The perceived pressure from the investment community, combined with executive compensation that’s tied to earnings growth, fuels the obsession with near-term EPS.

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What Would Happen if the U.S. Stopped Requiring Quarterly Earnings Reports?

Harvard Business Review

On November 7, 2014, the FCA published a new policy stating that firms were no longer required to publish quarterly management statements. These findings suggest that frequent reporting makes it easier for sell-side analysts to cover firms. What about when the UK ended its quarterly reporting requirement?

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