Corporate Corruption: Culture of Enron
Summary :
Table of Contents
- Introduction
- The incentives for managers
- The 217 page report issued by Enron's board
- Leaders and managers of Enron
- The main way for promotion
- Hierarchies of managers
- The lack of trust and cooperation
- Creative accounting and misleading profit reports
- Conclusion
Abstract
Shareholder value was being diluted. It was worse than just being dishonest: stock options provided managers with strong incentives to get the value of their stocks up quickly - what mattered was not long-term strength but short-term appearances. corporate officers responded to the incentives and opportunities. Over the last 15 years, executive rewards in America have soared, and so have stock prices of those companies.
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