Why shouldn’t they be short sighted? As long as they get more money than they could possibly spend in their lives, they don’t have to play the long game.
They are incentivized to be short-sighted. All they need to do is beat the previous quarter’s numbers to bump the stock price up so they get their bonus. Nothing else matters, somehow. Every decision is made based on whether or not it will increase sales next *quarter*, with no care at all given if it might actually decrease sales next *year*.
So that’s where all of Grumbel’s budget has been going.
Amazing how short sighted executives can be.
Why shouldn’t they be short sighted? As long as they get more money than they could possibly spend in their lives, they don’t have to play the long game.
They are incentivized to be short-sighted. All they need to do is beat the previous quarter’s numbers to bump the stock price up so they get their bonus. Nothing else matters, somehow. Every decision is made based on whether or not it will increase sales next *quarter*, with no care at all given if it might actually decrease sales next *year*.