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Wednesday, 17 September 2008 |
The Bloomberg Building in New York City was the site for a September 17, 2008 symposium on the practice of earnings guidance by companies and stock market professionals. CED and others believe that an over-emphasis on quarterly earnings guidance leads to "short termism," or a negative and undue focus on hitting announced earnings goals. CED Trustee and former SEC Chairman William H. Donaldson provided the keynote address that started the session and linked the current turmoil in financial markets to "excessive focus by too many corporations on achieving short term results." His entire prepared remarks can be found here. CED has long advocated responsible corporate governance practices and in late 2007 released Built to Last: Focusing Corporations on Long-Term Performance, a report that examines the drawbacks of "short termism" and offers recommendations for curbing excessive earnings guidance.
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