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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (461548)	3/6/2009 11:10:41 AM
From: combjelly	Respond to of 1574028

"it's that public corporations, particularly ones in the realm of finance, are structured so that the CEOs and other execs are incentivized to think short-term rather than long-term and take high risks on behalf of their wallets rather than on the good of the company, the good of the community, of the good of their country." Exactly. The high salaries are just one of many symptoms. Quarterly reports don't help, either. A case in point is HP. Fiorina was prone to making short term gains, like buying Compaq, and ignoring the structural problems that were harming the company long term. So she would have a couple of quarters of good bonuses, followed by several quarters of pain as HP shed marketshare, and she'd do something to get another bump, lather rinse and repeat. Hurd has a different approach, he thought more long term and HP is doing much better now.