Under SEC rules, which of the following is true?
A) Shareholders may be subject to personal liability for paying excessive executive compensation.
B) Publicly held corporations must disclose executive compensation information to shareholders, but not the public.
C) Board of director members can sue a corporation for excessive executive compensation.
D) Board of director members may be subject to personal liability for paying excessive executive compensation.
Question 2The ________ Act of 2002 brought a number of reforms to enhance corporate responsibility, enhance financial disclosures, and combat accounting fraud due to dishonesty in companies such as Enron and Tyco.
FIll in the blank with correct word.
Question 3Which legally required document reveals detailed information about the compensation of the CEO and named executive officers (NEOs)?
A) company's annual report
B) compensation and benefits scorecard
C) definitive proxy statement (DEF 14(A))
D) say-on-pay summary statement
Question 4Discuss the three key provisions of the Dodd-Frank Act that apply to setting executive compensation.
What will be an ideal response?
Question 5Who are the key players in setting executive compensation? Detail their different roles. How does the SEC affect their roles?
What will be an ideal response?
Question 6Which organization has as one of its main goals to help prospective investors understand the financial matters of importance to companies?
A) U.S. Department of Labor
B) Public Company Accounting Oversight Board
C) Securities and Exchange Commission
D) Dodd-Frank Commission
Question 7Shareholders' interests are represented by a ________, who weigh the pros and cons of top executives' decisions.
FIll in the blank with correct word.
Question 8The actions of executives on behalf of their own self-interest are known as the ________ problem.
FIll in the blank with correct word.
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