article thumbnail

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

But while measuring the increase in short-term pressures and identifying perverse incentives is fairly straightforward, assessing the ultimate impact of corporate short-termism on company performance and macroeconomic growth is highly complex. Earnings-per-share (EPS) growth: Difference between EPS growth and true earnings growth.

article thumbnail

What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

I know that finance professors at business schools throughout the nation teach MBAs and executives that, for the sake of economic efficiency, a company should “maximize shareholder value.” Employee incentives. I disagree with this priority. That’s just 2.1% of Apple’s buybacks reported thus far for fiscal 2014.