Posts Tagged ‘rana foroohar’
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In this quote, Rana Foroohar is sharing the results of a survey that asked CEOs about prioritizing long-term innovation versus short-term earnings goals. The survey found that 80% of CEOs said they would abandon investing in a project that could spur a decade of innovation if it meant missing their earnings targets for just one quarterly financial report.
This suggests many corporate leaders are overly focused on delivering profits in the immediate short-term, even if it comes at the expense of funding potentially game-changing innovations that may take years to materialize returns.
Foroohar appears to be critiquing an overly narrow emphasis on quarterly earnings among CEOs that could undermine long-term growth and competitiveness for the sake of temporary Wall Street satisfaction according to this interpretation.
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Rana Foroohar seems to be pointing out an imbalance between the finance industry’s economic impact and its profits. While the finance sector only accounts for 4% of total jobs in corporate America, it generates 25% of all profits.
This suggests that the finance industry is highly profitable relative to other sectors that employ more workers. Foroohar appears to be implying that the finance industry earns a disproportionately large share of profits compared to its actual contribution to employment in the U.S. economy.
For the past 15 years Rana Foroohar has covered the financial industry for Newsweek and Time and has now written a book looking at what she’s learned during that time