=+A8-6 Board ofdirectors actions ETHICS In early 2002, Bernie Ebbers, the CEO of WorldCom Group, a major
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=+A8-6 Board ofdirectors’ actions ETHICS In early 2002, Bernie Ebbers, the CEO of WorldCom Group, a major telecommunications com¬
pany, was having personal financial troubles. Ebbers pledged a large stake ofhis WorldCom stock as security for some personal loans. As the price ofWorldCom stock sank, Ebbers’ bankers threat¬
ened to sell his stock in order to protect their loans. To avoid having his stock sold, Ebbers asked the board of directors of WorldCom to loan him nearly $400 million of corporate assets at 2.5%
interest to pay off his bankers. The board agreed to lend him the money.
Comment on the decision of the board of directors in this situation.
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