Enron, WorldCom, Tyco, and other companies underwent executive compensation scandals. Which of the following were mainly subject to abuse?
A)stock options
B)executive perks
C)deferred compensation
D)ESOPs

Question

Quizplus · Accepted Answer

Stock options were mainly subject to abuse in executive compensation scandals. These scandals involved granting executives in-the-money stock options, backdating them, or manipulating the timing of option grants to increase their potential value. These actions inflated executive compensation and misled investors by misrepresenting the true cost of compensation. Executive perks, deferred compensation, and ESOPs were not as commonly abused in these scandals.

Enron, WorldCom, Tyco, and Other Companies Underwent Executive Compensation Scandals