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Finally, BCG suggests that companies make their strategy as transparent as possible. Doing that is something Gordon Coburn credits for helping Cognizant, which presents at more than 30 investor conferences a year, earn a higher multiple than its peers. The ultimate reward for all that hard work should be an investor base that believes in the companys long-term potential.
Theres a lot to be said for getting a base of investors that really understands and appreciates long-term results, comments MEMC senior vice president and CFO Ken Hannah. Theyre not the ones calling you every time your numbers are plus or minus some minute amount.
Randy Myers is a contributing editor of CFO. Avoiding Cash Traps. In their efforts to balance short-term investor expectations with long-term strategic goals, The Boston Consulting Group (BCG) warns companies to avoid four cash traps that can have a negative impact on their near-term shareholder returns.
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