Welcome to my weekly update of the most interesting news in the world of high accountability leadership.
This week we’re focused on accountability for both long-term results and short-term earnings.
Most of the time, meaningful results can only be achieved in the long term. But it’s all too easy for leaders to focus on boosting short-term profits rather than creating long-term value. In this context, research we’re featuring this week looks at some of the negative consequences of short-term stock incentives.
A lack of accountability to a long-term vision significantly damages long-term shareholder value. There’s a range of great reads that explain how we can refocus leadership towards long-term growth.
I’m interested to hear how you reward leaders that focus on the long-term. You can get in contact by replying directly to this email.
How CEOs became takers, not makers
Steve Denning explains that many CEOs are too focused on increasing their EPS. This can come at the expense of a sustainable long-term vision. Profits and share prices need to be refocused as the result, not the goal of a firm’s activities.
Profits without prosperity
Using stock-based incentives force executives to focus on short-term profits. But maximising shareholder value may come at a cost. Companies that don’t focus on sustainable long-term goals are unlikely to remain competitive.
How to develop greater accountability
Leaders who are accountable to their results are crucial if a business is to prosper over the long-term. This article offers six helpful tips on how leaders can develop greater accountability.
Performance pay up, options down
Recent research indicates that companies are moving away from executive share plans as compensation. The trend is towards performance measures that are more closely aligned to a company’s long-term goals.
Do your leaders deliver results consistently on-time and on-budget? Gillian Fox is an expert in leadership development to build accountability across your organisation.