A Public Company Instituted a Clawback Policy

question 23

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 received 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:

Truth Table

A tabular representation used in logic to determine the truth value of a proposition based on the truth values of its components.

Component Statements

Parts of a compound statement in logic, each of which can be true or false separately.

Connective(s)

Logical operators in propositional logic that combine one or more propositions to form a logical statement.

Combustible Material

Any material that can ignite and burn, either freely or under specific conditions.