A Public Company Instituted a Clawback Policy

question 42

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.

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Definitions:

Market for Yen

The foreign exchange market where the Japanese yen is traded, including the buying, selling, and speculating on yen.

National Income

The total value of all goods and services produced by a country's economy over a specific period, often used as a measure of the nation's economic health.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or simply $, and used throughout the country.

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international trade.