Does the law specify a timeline? Even if it did, would it be possible to prove that the CEO knowingly optimized for 3 year gains at the expense of 20 year ones?

Does the law specify a timeline? Even if it did, would it be possible to prove that the CEO knowingly optimized for 3 year gains at the expense of 20 year ones? An executive's options sink or swim with the company's share price. If a company's investors really want their executives to focus on the horizon, they should adjust compensation accordingly. Lengthen CEO tenure, and give stock/option grants with 10 year vesting periods. People will always act in accordance with their own incentives. That's the fundamental principle behind the free market. The only way to get a CEO to focus on your long term success is to tie his long term success to it too.