Earnings management "- the drive to meet profit goals, and that the leaders would do to make this happen - it became common practice, and, according to the author, it is a step down a very dangerous path. Too many of our leaders use their talents and resources for corporate Smoothing income "rather than build their companies, he said. This is an important feature of an unhealthy society where our leaders are now living - a community that makes people keep false life. good news is, if we can refocus on the community leaders, that are healthy and meaningful, we can return the authenticity of C-suite. A first step in this direction: away from the stock-based incentives. This is not to say that leaders should not hold shares, but they should be prevented from selling any shares, while serving in this capacity, and indeed for several years after leaving his post. "Hide
by Roger L. Martin Source: Rotman School of Management, 4 pages. Publication Date: May 1, 2011. Prod. #: ROT135 -PDF-ENG
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