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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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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. ” A Review of Relevant Studies.

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