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Change corporate pay structures to tackle short-termism

If we want to change the City's culture of focusing solely on near-term targets then we must link pay packets to long-term goals

Quicker is not always better: by focusing on long-term gains businesses and investors can benefit
Quicker is not always better: by focusing on long-term gains businesses and investors can benefit Photo: Alan Baker / Ikon Images / Getty Images

The short-term behaviour that contributed to the global financial crisis is sadly still very much a part of the global economy.

A recent global survey of 342 financial analysts by Aviva Investors found that 42% of respondents thought research published by banks and brokers was preoccupied with short-term financial metrics. The survey further found that by neglecting environmental, social and governance issues that give indicators as to the health of a company, financial analysts are failing to provide investors with the information needed to make informed decisions.

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