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Is Short-Term Behavior Jeopardizing the Future Prosperity of Business? (CLO Strategic Implications)


October 2015 | Publication

Two trends are in line with the expected impact of short-termism at a public company level—a reduction in business investment and an increase in payouts to shareholders. Governance experts, economists, and shareholders themselves are raising concerns with these trends, saying many companies are ransoming future prosperity for higher returns today. The Conference Board Governance Center, which has been studying this issue for more than a decade, believes the future strength of public companies rests on a return to a more balanced approach. Chief legal officers are in a unique position to review the governance structures of their companies to determine whether any changes could better balance the demands for short- and longer-term performance.

Explore our full portfolio on Short-termism.


AUTHORS

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Donna Dabney

Former Executive Director, Governance Center

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Melissa Aguilar

Former Researcher, Corporate Leadership
The Conference Board

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Gad Levanon, PhD

Vice President, Labor Markets
The Conference Board

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Alex Parkinson

Communications Institute Co-Leader
The Conference Board
Principal
Parky Communications


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Douglas Chia

President, Soundboard Governance LLC

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