An important understanding for governance professionals, boards and management on the issues surrounding focus on long term goals.
Much of the responsibility for taking a long-term view, of course, should fall not only on the CEO but also the board. To be sure, strong CEOs give their boards and external stakeholders a vision and road map for future value creation and a sense of purpose based on a dispassionate assessment of the starting point. Both can help improve the performance and health of their companies well beyond their own tenures. But board members have a responsibility not only to define incentive schemes that will inspire the right behavior from CEOs but also to give them the time and resources required for the strategy to bear fruit. This is no mean feat, and as the saying goes, good things come to those who wait.
GGI’s purpose: To ensure all businesses, regardless of size or financial ability, have access to leading governance tools and resources to support performance.