My understanding is that prior to the 70s most CEOs were effectively ceo for life. They were strongly incentivized to preserve the business, even if that meant keeping it at a low/no growth state.
When the MBA and Private Equity craze kicked in, we had golden parachutes and other instruments which pushed companies into growth mode.
It is not immediately clear to me that incentivizing short term growth is a wise business strategy for the long term.
When the MBA and Private Equity craze kicked in, we had golden parachutes and other instruments which pushed companies into growth mode.
It is not immediately clear to me that incentivizing short term growth is a wise business strategy for the long term.