If CEOs care about the long term, why don't they talk about it?

Harvard Business Review / November 2013
Sakis Kotsantonis, Shalini Rao, Daniela Saltzman, George Serafeim

CEOs are increasingly frustrated by the short-term orientation of investors. They say markets under appreciate long-term investments and ignore issues like employee and customer welfare, while pressuring companies to make decisions that maximize short-term earnings and stock prices. CEOs are perhaps right that some investors are short-term oriented and, as a result, damage the long-term success of businesses. However, according to research by our organizations – KKS Advisors and The Generation Foundation – few CEOs are providing materially relevant information to investors that would encourage long-term oriented capital allocation.

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