The CEO determines top management's rewards and incentives. The CEO influences the moti- vation of top managers to pursue organizational goals effectively. Even though they knew Enron was collapsing, in the days before, its top managers decided to award them- selves over $80 million in compensation for their "work." In 2002, a judge in Houston opened the way for representatives of its shareholders to go after this money and other money its top executives had extracted from the company. The same was true at Tyco, where its top three executives were accused of looting hundreds of millions of dollars from the company.

 LO.1