"I'm not blaming shareholders", Andrew Thorburn, managing director of National Australia Bank told the banking royal commission yesterday, but then went on to lecture them anyway."Tracking the index every day and tracking a share price is very good example" of focusing on the short term rather than the long term, Thorburn said."You know, has my wealth gone up or down. Really, you shouldn't be thinking of it like that if you're a bank shareholder."Markets became the focus, quarterly earnings and updates became the focus. Half year updates, repeat. "And then, one of the things that came into play - which I think has caused a really significant impact - that has been that incentives for executives started to be locked on to that cycle. "And then you're in a cycle of executives looking at one and two and three-year returns, and really thinking about shareholder return, not about the broader metrics and reputation of your business which, really, is what you should be focused on." Michael Hodge, counsel assisting, summed things sup: "So that means everything gets focused on a very short-term view of what's happening with your share price?"Thorburn: "Well, I agree with all you said. Apart from the inference that maybe it's the shareholders' fault. And I don't think it is. "I think it's the role of the CEO and the board and the management to manage the business steadily, with good principles, good risk management, good leaders, good product development, quality. We're being buffeted by that."Hodge pushed harder: "To the extent then that there has been, as you've said, a shift towards focusing on a very short-term view, that must, therefore, be a failing of the board and the senior executives?""Yes", Thorburn agreed, "I think it's a common failing and I don't think it's intentional."It has just been a drift that has happened, and it should be the accountability of the board and the CEO and the management to make sure that in the future that doesn't happen as much.