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CFA Level 1
Ethical and Professional Standards

Employer Duties - Compensation and Performance Metrics

Medium Cfa Institute Code And Standards Employer Duties - Compensation

As a financial analyst at a reputable investment firm, you are offered a compensation package that includes a performance bonus based on client feedback and investment returns. However, the firm also has a policy that allows senior management to adjust performance metrics to meet bonus criteria, even if those adjustments may not reflect actual performance.

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, which principle is most directly violated by the firm's practice of allowing management to adjust performance metrics for bonus eligibility?

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