The Securities and Exchange Commission Requires Public Companies to Disclose

question 77

True/False

The Securities and Exchange Commission requires public companies to disclose the ratio of the compensation of the chief executive officer (CEO) to the median compensation of its employees in proxy statements and in annual reports requiring executive compensation disclosure.

---

Definitions:

Status Quo

The current state of affairs or the existing state of things, often used to describe a situation that people wish to maintain or are reluctant to change.

Passive Support

A form of assistance where help is provided indirectly or through minimal effort, often without direct intervention.

Whistleblowers

Individuals who expose illegal, unethical, or improper practices within an organization, often at personal risk.

Diehards

Individuals who are strongly resistant to change or who hold firm to a particular belief or position.