'Earnings management' - the drive to meet earnings targets, and the things executives will do to make that happen -- has become a pervasive practice, and according to the author, it is a step down an extremely dangerous path.
Way too a lot of our leaders are employing corporate resources and their gifts to 'smooth earnings' rather than to build their businesses, he says. The great news is, if we can refocus CEOs on communities which are significant and healthy, we can return credibility to the C-suite. The initial step on this road: do away with stock-based bonuses.
This does not mean that executives shouldn't own any shares, but they should be prevented from selling any stock while serving in that capacity, and indeed for several years after leaving their place.
The Age of the Inauthentic Executive a case study solution
PUBLICATION DATE: May 01, 2011 PRODUCT #: ROT135-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE