Multiple Choice
A public company instituted a clawback policy.What does this mean?
A) The company can require the CEO and CFO to reimburse the company for any bonus or profits they recieved from selling company stock within a year of the release of flawed financials.
B) At least once every three years, companies must take a nonbinding shareholder vote on the compensation of the five highest-paid executives.
C) The company is prohibited from expelling shareholders unless the firm pays a fair price for the minority stock and the expulsion has a legitimate business purpose.
D) The company has decided that the compensation level of its executives is not in the company's best interests, so it reduces all executive pay levels by a certain percentage.
Correct Answer:
Verified
Correct Answer:
Verified
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