Submitted by: Submitted by sim1405b
Views: 394
Words: 2792
Pages: 12
Category: Business and Industry
Date Submitted: 04/06/2012 07:31 PM
CONTENTS PAGES
Introduction 2
Initial Survey and Engagement Development 2-3
Planning Phase 3- 5
Work Program Phase 5-6
Field Work/Findings Phase Portion 6-8
Reporting 8-9
Recommendation 9-10
References 10
Introduction
The various investigations of WorldCom that have been published to date have examined how personnel at the Company committed what appears to be the largest accounting fraud in history. Those investigations also outline the governance practices that were followed during the tenure of former WorldCom CEO Bernard J. Ebbers (“Ebbers”). Among other things, the board of directors of the Company consistently ceded power over the direction of the Company to Ebbers. As CEO, Ebbers was allowed nearly imperial reign over the affairs of the Company, without the board of directors exercising any apparent restraint on his actions, even though he did not appear to possess the experience or training to be remotely qualified for his position. One cannot say that the checks and balances against excessive power within the old WorldCom did not work adequately. Rather, the sad fact is that there were no checks and balances. As with some other U.S. companies, the compensation practices of WorldCom allowed lavish compensation, far beyond any rational calculation of value added by senior executives such as Ebbers, the CFO Scott Sullivan. Compensation abuse at WorldCom is most...