This chart shows that the share of corporate R&D investment in long-term projects by Germany CEOs is three times higher than by US CEOs. It’s called short-termism, hurts investment and productivity, and results from weak, undemanding U.S. boards who pay without demanding performance. U.S. CEOs sell the future short because they (and their stock options) will be gone by then.
This chart shows that U.S. CEOs suppress “worthwhile” investment in new “very valuable” projects, using the savings to boost quarterly earnings and spike stock prices.
This chart based on US Government data that shows productivity growth slowed by one-third, to less than 2 % after 1979. The reason? CEOs switched focus to spiking earnings by cutting R&D, cutting investment, and compressing wages. Investment fell and so did productivity growth.
This chart shows that the pace of U.S. technology progress has dropped by one-third since 1982. Why? U.S. CEOs reduce R&D, harming productivity, and use the savings to spike profits over the next quarter or year to reap stock options. They sell the future short.
This chart shows that U.S. CEO compensation is about double Australia or northern Europe when stock options are included. Yet, US firms’ investment, productivity, and wage growth is weak. Never has so much been earned by so many for such little performance.
U.S. Exceptionalism: Pay without performance.