Heavy pressures on company managers to meet earnings targets

Question

What are the heavy pressures on company managers to beat or meet earnings targets?

Answer 1

Heavy pressures upon company managers to beat or meet earnings targets:

When companies find themselves jumbling to get determined earnings growth and meet quarterly and yearly performance expectations of Wall Street investors and analysts, managers frequently feel huge pressure to do whatever it takes to sustain the organization’s reputation for delivering fine financial performance.

Once ethical boundaries are crossed in attempt to “beat or meet the numbers”, the entry for making extra tremendous ethical compromises becomes lower. Organization executives frequently feel pressured to hit the financial performance aims because their compensation depends greatly on the organization’s performance. The basic problem with a “create the numbers and move on” syndrome is that an organization does not really serve its consumers or its shareholders by placing top priority on the bottom line.