Basing the compensation of CEOs on the stock price is a real problem. I also see a link to politics. In politics we have a similar situation: Most politicians

Basing the compensation of CEOs on the stock price is a real problem. I also see a link to politics. In politics we have a similar situation: Most politicians (at least in our country) are planning for one or two terms of office. After that, they are eligible for a pension big enough for them. And when this is not enough, they also can get money from corporations just by being a consultant after their time in office. So, the plan is just short term: Get into the parliament, get a big seat as secretary if possible or other good job and after just a few years you don't have any trouble in live any more, money-wise. This can be best reached, by short-term thinking. Be helpful to the right people, be a "party soldier" (as it is called in Germany) that does what the party top wants from you. Own thinking, or long-term success or even thinking, what is best for the people, is counter-productive in this scheme. So what we more and more get, are short-term solutions, that only make you popular for a short-term but does not help with the long-term problems. Troublesome decisions are shifted into the future, when you are out of office, even when the troubles will increase meanwhile. The same short-term thinking is produced in CEOs today. A CEO just has to get the job and be there, for 4-8 years to earn enough money, most people don't have in a lifetime. So what does he do? Make troublesome decisions, or decisions, that cost money for the next 3-5 years and will pay maybe in 6 years, maybe later?? You know the answer. I think, this short-term thinking and the greed, that is injected in many of us today, are the reason of the most problems we face today.