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Saturday, April 30, 2016

Rewarding the Long-term View

It seems to me that the easiest way to change corporate thinking and influence from quarterly to looking ahead decades would be to only pay out executive bonuses upon retirement after a minimum term of service, instead of immediately. Then they would still be rewarded for annual performance but wouldn't be able to bail once their parachute is large enough.They would have to invest rather than gamble, perhaps encouraging the same behaviour from financial investors, governments, and society at large.

Just a thought.

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