Does performance-linked compensationencourage excutives to focus on short-term performance at the expense of long-term growth?

Does performance-linked compensationencourage excutives to focus on short-term performance at the expense of long-term growth?
Frequently it does. It does not have to, however. As an example, if the reward is provided in the form of non-sellable corporate stock then the executives have a long-term incentive.