One thing that could improve performance: only let CEOs sell their stock gradually over a 5 year period after the exercise their options.
Too much risk for the CEO? He's the one with the most influence over future performance. If he's putting the company on a good long term footing and chooses a good successor, he'll do fine.
If we incent CEOs to think long term, its more likely they will. CEOs that are founders or that have huge investments in their company's stock already tend to think long term.
Too much risk for the CEO? He's the one with the most influence over future performance. If he's putting the company on a good long term footing and chooses a good successor, he'll do fine.
If we incent CEOs to think long term, its more likely they will. CEOs that are founders or that have huge investments in their company's stock already tend to think long term.