Triple Crown Leadership

Triple Crown Leadership

Category Archives: Short-termism

Does Your Board Have Your CEO’s Back?

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  One of the great scourges of our age is “short-termism.” A staggering 78 percent of CFOs and CEOs admit to sacrificing long-term value to achieve smoother earnings. Many decry this “suicide by quarter” mentality, but few CEO’s will be able to withstand the pressure to make the quarterly numbers unless he or she has the full, vocal support of the board. When the CEO and CFO conduct the conference call and get hammered by day traders or short sellers, and when the stock dips because the company didn’t make the whisper number the Street expected, what will the board do? Hide? Talk among themselves about whether or not the CEO will “make it”? If so, your CEO won’t trust your board. Without this trust, the CEO’s job is too   …Continue Reading


The Scourge of Short-Termism

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 “The future whispers while the present shouts.” Al Gore, former U.S. Vice President One of the great scourges of our age is “short-termism.” A staggering 78 percent of the managers surveyed in a large-scale study of CFOs and CEOs admit to sacrificing long-term value to achieve smoother earnings. In July 2011, former Federal Deposit Insurance Corporation (FDIC) chair Sheila Bair wrote: “The common thread running through all the causes of our economic tumult is a pervasive and persistent insistence on favoring the short term over the long term, impulse over patience.”  Our 2012 blog, “Suicide By Quarter—Leading for the Short-Term,” indicated the investor base in corporations is not homogeneous. We have day traders who live by daily stock fluctuations, but there is a growing body of investors—notably including “impact investors”—who want excellent,   …Continue Reading