The public corporation is typically bedeviled by the gap between managers’ and shareholders’ interests. Over the years, governance has attempted to close that gap by aligning incentives with measures of performance. These attempts have often failed. But where they have succeeded, they have left public corporations increasingly swayed by short-term results (which are easy to measure) at the expense of future success.
Corporate Governance Should Combine the Best of Private Equity and Family Firms
A hybrid model can balance the short term with long-term continuity.
December 22, 2016