The Dilemma of Share Price (CEO)
Sometimes it is felt that the main role of the CEO of a public company is to increase the share price of his corporation as quickly as possible. This can lead to some CEOs spruiking rather than educating, ie
"...it really should be about education and getting the market to make an informed judgement. You have to be forthright about what is right, and what is wrong......constructing a sustainable share registry is important to management and shareholders..."
Ronn Bechler as quoted by Jonathan Shapiro, 2017
For example, if the register is dominated by growth investors and the company fails to meet its expectations, these investors will lose interest.
However, a CEO on short-term rewards will have an incentive to favour short-term results.
"...an overvalued share price can be just as bad as an undervalued price, because shareholders judge management on price movements..."
Wayne Peters as quoted by Jonathan Shapiro, 2017
If the share price increases quickly, some shareholders and the media will praise management. However, if it gets too high, it will attract the wrong sort of attention from the media, regulators and short sellers.
On the other hand, if the share price is stagnating or falling, shareholders will blame the management and want changes.