5
Rethinking Incentives and Metrics
Doing the Right Thing and Self-Interest
CEOs must take two essential steps to fix the corporate system. They must first select the proper governing objective for their company and then gain the commitment of employees to serve that objective. In other words, the organization must do the right thing and doing the right thing must align with everyone’s self-interest.
The Right Objective
The case for embracing the maximization of long-term shareholder value as the governing objective for publicly traded companies has been persuasively argued many times. Michael Mauboussin of Credit Suisse, Dominic Barton of McKinsey, and Charles Elson of the University of Delaware have addressed the topic ...
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