From: Marc J. Goldberg [MJG@peoplepc.com]
Too often corporations focus on short term earnings (i.e. meeting quarterly earnings estimates) and not enough on long term strategic planning. Currently most board members and even CEO's have a short term stake in the companies they oversee and are compensated accordingly. However, all other stakeholders are invested for the long term! This leads to ugly strikes, raids on pensions, accounting scandals, etc.
This makes our economy less efficient and leads to outsourcing, jobs losses to foreign countries, layoffs and overworking current employees, which increases health care cost. Instead of investing in continuous job training, modernizing and upgrading plant and equipment and preparing for global competition, top management and boards are enriching themselves.
You can't have efficient equities markets when the goals of corporate management and board of directors are opposite of all other stakeholders.
Marc J. Goldberg