Does it bother you that he's right?
Interestingly enough, a number of companies are moving towards this. Several companies have always done performance pay through long term criteria.
I'd be interested to see what Kandahar and his MBA have to say given the sheer lack of people with business backgrounds here.
AIG's London office where most of the CDS were made had a pay system where the London office kept 50% of its profits and sent the rest to the AIG HQ. Thus, driving them towards incentives to ignore the long term implications of the companies they were giving CDS to and focus on the pure short term bottom line. The focus was sell, sell, sell. Long term steady performance with little or no losses was not the key. Before regional banks went bonkers, many had performance pay packages where CEOs were paid according to how well a bank did over a course of several years. Stock options with time lines five, ten, fifteen years down the line also attempt to fix this. Anyone who's worked in a manufacturing plant will tell you that managers who are paid on sales will push products on customers while telling them they can return them later. How does that help the company's long term growth when all the manager is focused on is short term sales?
In my realm, that's channel stuffing, and it's highly illegal. But that's what you get when you focus on short term selling and ignore long term performance.