A major criticism of short-term incentives for executives is that they place too much emphasis on monthly or quarterly performance, which may lead to negligence of long-term survival and growth objectives.

Question

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Short-term incentives can create a focus on immediate results at the expense of important long-term objectives such as investment in research and development, building sustainable relationships with customers, and developing human capital.

A Major Criticism of Short-Term Incentives for Executives Is That