Pay structures often spur chiefs to focus on short-term results rather than long-term value
At the heart of the financial crisis that has paralyzed global financial markets is a mystery: How could the masters of the world's most sophisticated banks and financial institutions stake the lives of their businesses on collateralized debt obligations and mortgage-backed securities that have proved to be so toxic? The answer may lie in the murky world of executive compensation, and efforts to prevent similar catastrophes in the future could depend on unlocking its secrets.
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