Government and Business Must Think Long Term

• By Barbara Hackman Franklin, David H. Langstaff and Charles O. Rossotti
• Special to Roll Call
• Sept. 10, 2009, Midnight

For months now we have witnessed, and even participated in, public debate about myriad complex causes of our present economic woes. Business and government actors of all kinds have been under the spotlight and have taken the heat for acting in the short-term interests of the few, at the expense of many. Important work in areas like aligning executive compensation with long-term results could help unwind the system that has produced the results that we have now. Yet, so far, public debate has failed to highlight a point that needs more discussion and action — the relentless pressure for short-term results from some institutional shareholders, including mutual funds and hedge funds.