I remember standing in an elevator with my manager on the way to sign a contract for a new bit of software. It would cost us 100k per year for this software. I asked my manager, “don’t we already have this product in-house, at least most of these features?” Their answer: “who cares? It’s not my money.”
I think there’s not so much an incentive problem, but more of a “hiring the wrong people” problem. People that literally don’t give a crap about anything but their next bonus or raise.
It has been established that most people are motivated by their personal short term gains, they have no real reason to care unless there's a positive incentive for them to worry about the long term consequences of their actions.
Chances are that those managers will be able to deliver their features on time, meeting all KPIs & OKRs, while accumulating a stack of technical debt for future maintainers.
I think there’s not so much an incentive problem, but more of a “hiring the wrong people” problem. People that literally don’t give a crap about anything but their next bonus or raise.