Explain the ways in which the federal government has tried to change the landscape of corporate governance and executive compensation
?The federal government has tried to change the landscape of corporate governance and executive compensation, in the following ways:
Lead Director. The independent members of the board are required to meet regularly on their own, without inside directors. About half of the companies in the S&P 500 have appointed a so-called lead director to run these meetings and serve as a counterweight to the CEO chair.
Disclosure. The SEC now requires more complete disclosure of executive compensation. This disclosure includes the relationship between financial performance and executive compensation as well as the ratio between the CEO's total pay and the median total compensation for all other company employees.
Clawbacks. A public company must establish a claw-back policy, whereby it can require the CEO and CFO to reimburse the company for any bonus or profits they received from selling company stock within a year of the release of flawed financials.
Say-on-pay. At least once every three years, companies must take a nonbinding shareholder vote on the compensation of the five highest paid executives.
?
You might also like to view...
When conducting marketing research in foreign countries, statistical estimation of sample size may be difficult since estimates of the population variance may be unavailable
Indicate whether the statement is true or false
Generally, US courts are willing to give effect to foreign judgments
Indicate whether the statement is true or false
The general liability policy covers bodily injury or property damage caused by "an accident, including continuous repeated exposure to substantially the same general harmful conditions." This cause is loss is called a(n)
A) occurrence. B) accident. C) event. D) incident.
Orbital Flights, Inc, is required to register its securities under Section 12 of the Securities Exchange Act of 1934. Section 16(b) of the act covers A) the declaration of dividends by Orbital's board of directors
B) the later re-registration of Orbital's securities. C) the short-swing activities of Orbital's insiders. D) the solicitation of proxies from Orbital's shareholders.