Under SEC rules,which of the following is true?
A)Shareholders may be subject to personal liability for paying excessive executive compensation.
B)Publicly held corporations must disclose executive compensation information to shareholders, but not the public.
C)Board of director members can sue a corporation for excessive executive compensation.
D)Board of director members may be subject to personal liability for paying excessive executive compensation.

Question

Quizplus · Accepted Answer

Under SEC rules, board of director members may be subject to personal liability for paying excessive executive compensation. Shareholders are not usually personally liable for executive compensation, and publicly held corporations are required to disclose executive compensation information not only to shareholders but also to the public. Board members can sue a corporation for excessive executive compensation, but they are not required to do so under SEC rules.

Under SEC Rules,which of the Following Is True