16 Truths about Income Inequality

The Conference Board, Inc., 10 pages, February 16, 2017
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Short-term thinking has created a corporate culture pushing quarterly numbers over practices that promote solid growth. To combat inequality and its effects, companies must invest in workers, innovation, and long-term projects.

Document Highlights

Short-term thinking has created a corporate culture that values earnings per share and quarterly numbers over the research, innovation, and planning that bring about sustainable long-term growth. Also contributing to inequality: shareholder activism, executive compensation practices that benefit the C-suite over the rank and file, and changes in capital markets that have lowered the number of public companies in the United States from 8,000 in 1986 to just 4,000 today. What can companies do? They can invest in long-term projects. They can champion diversity, which strengthens innovation. And they can invest in the workers who will drive innovation.

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