Curbing Short-Termism in Corporate America

Monday, May 19, 2014

5:30 pm

Room 190, Stanford Law School Map

Sponsored by:
Arthur and Toni Rembe Rock Center for Corporate Governance

The clamor is rising against short termism -- judging a company by its performance over the last quarter, rather than the last few years. The Business Roundtable has been recently joined by the head of the largest asset manager and the Chief Justice of the Delaware Supreme Court in decrying the strong pressures for short-term results exerted by daily stock traders and activist hedge funds. According to these critics, these pressures are preventing corporate executives from making long-term investments needed for sustainable growth.

According to Robert Pozen, these criticisms of short termism are based on distorted facts and faulty logic. He argues that many of the proposed remedies would undermine the legitimate rights of shareholders. Instead, he thinks that in order to promote a longer term approach, corporate boards should lengthen the time frame for executive compensation, by basing bonuses on the performance of corporate executives over 3 to 5 years, rather than the typical one-year period.

Monday, May 19, 2014.
5:30 pm – 7:00 pm

This event is open to the public and free.  Registration is required.


Lecture / Reading 

General Public, Faculty/Staff, Students, Alumni/Friends, Members