Recent accounting scandals, such as those involving Enron, WorldCom, and Fannie Mae, have highlighted the roles of boards of directors in executing their responsibilities. For example, eighteen of Enron's former directors and their insurance providers have settled shareholder litigation for $168 million, of which $13 million is to come from the directors personal assets. Board members are now on notice that their directorship responsibilities are being taken seriously by stockholders.
How far down the management hierarchy, should responsibility for accounting or fraudulent practices be held accountable?