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That’s true and a good general guide but the current incentives for the executive team to under invest in long term health of a business and boost short term pr
by digitaltrees 7y ago
That’s true and a good general guide but the current incentives for the executive team to under invest in long term health of a business and boost short term profit are overwhelming this rational analysis.
- s1artibartfast 7y agoThe incentive for the executive team are set by the board and shareholders, who could easily restructure incentives to favor R&D investment. Whether is this is good for long term profit will be different from case to case. I worked at a company where annual goals routinely included invest X billion on new technology acquisitions. Some of this money sticks and some doesn't.