A CFO whose compensation plan may have had the effect of creating an incentive for unethical actions includes:

Question

Quizplus · Accepted Answer

Scott Sullivan, the former CFO of WorldCom, had a compensation plan that included a large amount of stock options that would vest only if the company met certain targets. This created an incentive for Sullivan to manipulate the company's accounting to meet those targets and artificially inflate the stock price, which he did by orchestrating the largest financial fraud in U.S. history. The other options listed were also involved in unethical actions, but their compensation plans did not have the same effect of incentivizing unethical behavior.

A CFO Whose Compensation Plan May Have Had the Effect