At least once every three years,companies must take a nonbinding shareholder vote on the compensation of the five highest-paid executives.This is referred to as
A)clawback pay action.
B)voting out the directors.
C)activist investing.
D)say-on-pay.

Question

Quizplus · Accepted Answer

The term used to describe taking a nonbinding shareholder vote on the compensation of the five highest-paid executives is "say-on-pay". This is because shareholders have the opportunity to "say" whether they approve of the company's executive pay practices. Say-on-pay votes are typically required at least once every three years, and are meant to provide shareholders with a means of expressing their views on executive compensation.

At Least Once Every Three Years,companies Must Take a Nonbinding