Firms now must provide a compensation discussion and analysis in the proxy statement which describes the specific items of corporate performance that are taken into account when making compensation decisions.

Question

Quizplus · Accepted Answer

This statement is true. The Securities and Exchange Commission (SEC) requires firms to provide a compensation discussion and analysis in their proxy statement, which includes information on the specific items of corporate performance considered when making compensation decisions. This is intended to increase transparency and accountability in executive compensation practices.

Firms Now Must Provide a Compensation Discussion and Analysis in the Proxy