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 management. 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 clawback 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...
Regional or specialty trade shows would be better than a large, national trade show for all of the following goals, except:
A) provide higher quality prospects B) more quality one-on-one time with customers C) enhance a firm's brand or corporate name D) opportunities to bond with customers
The ____ trigger clause allows a trigger to include multiple triggering events in a single trigger.
A. MULTIPLE B. MULTIPLE TRIGGER C. COMPOUND D. COMPOUND TRIGGER
Helen works as the vice president of Gotspeed Corporation, a company that manufactures and markets sports shoes. Nestor, a private cobbler, designs a new model of shoes that help a user's feet grip the shoe better, and he calls it the Anklator
Nestor's friend fixes an appointment for him with Helen to present his shoe model for possible adoption by Gotspeed. Instead of bringing the opportunity to Gotspeed's board of directors and the corporation, Helen pays Nestor's asking price and purchases the Anklator model herself. Helen leaves Gotspeed Corporation and forms her own company that manufactures and markets the Anklator shoe models. Which of the following is the the duty of loyalty breached by Helen? A) self-dealing B) usurping a corporate opportunity C) making a secret profit D) competing with the corporation
Donald Tramp declares bankruptcy. He has significant arrears of spousal and child support. He also owes $500 in parking tickets. It is his first bankruptcy. After nine months, he applies for a discharge. Which of the following is TRUE?
A) A discharge is not available to a natural person. B) If a discharge is granted, it will not release his spousal and child support obligations C) A discharge is usually automatic for first time bankrupts D) The discharge will not release him from amounts owed for parking tickets E) B, C and D