Time for Change: Rethinking Top Managers’ Bonus Systems for A Sustainable and Prosperous Future

Abstract

This opinion paper explores the negative consequences of short-termism in western corporations and the influence of short-term oriented political systems on the business world. It highlights the need for a paradigm shift towards long-term orientation and sustainable growth, focusing on four key areas: redesigning bonus systems, encouraging a culture of long-term thinking, fostering transparency and accountability, and engaging shareholders in long-term discussions. Through practical examples, the paper demonstrates how businesses can effectively implement these strategies to promote long-term value creation, ensuring their long-term success and contributing to a more sustainable and resilient global economy.