Many large corporations focus excessively on the short term and underinvest in their core businesses. Typically, attempts to change this lead to weaker discipline and accountability, which further harms shareholders. The talk will summarize the lessons of my book, Curing Corporate Short-Termism, which is a guide on how to encourage more investment in the future, all while maintaining discipline around profitability and capital productivity. We will discuss the criteria for achieving an “ownership culture,” where managers treat capital as if it were their own—along with insights on how companies can better set goals, develop plans, allocate resources, approve investments, make operating decisions, measure performance, and design better incentive compensation. Companies that embrace these principals tend to produce long-term value that benefits not just the organization’s shareholders, but its many stakeholders and society at large.
CFA Society Baltimore will provide a softcover book to the first 25 registrants.