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Rock Capital's shareholders are requiring its CEO and COO to reimburse the company for a bonus they received six months after it was discovered that the financials supporting the bonus were flawed. This action is known as __________.

User Tanise
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Final answer:

The action where Rock Capital's CEO and COO are asked to reimburse the company for a bonus received after flawed financials were discovered is known as clawback.

Step-by-step explanation:

The action where Rock Capital's CEO and COO are being asked to reimburse the company for a bonus they received after flawed financials were discovered is known as clawback. A clawback is a provision in an executive's contract that allows a company to recover previously paid compensation, especially when it is determined that the compensation was based on incorrect financial information or fraudulent activity. In this case, the shareholders are requiring the CEO and COO to return the bonus because the financials supporting it were flawed.

User Matias Andina
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