Rewarding executives for increasing quarterly earnings will motivate them to act in the long-term best interests of shareholders.

Question

Quizplus · Accepted Answer

Rewarding executives based solely on quarterly earnings can lead them to make short-term decisions that may not be in the long-term best interests of shareholders. This can result in neglecting investments in research and development, innovation, and sustainable practices, which can lead to long-term growth and shareholder value.

Rewarding Executives for Increasing Quarterly Earnings Will Motivate Them to Act