Question

Rules recently established by the Securities and Exchange Commission include a "say on pay" rule that requires:

A. Audit committee review of executive compensation.
B. Nonbinding shareholder votes on executive pay.
C. Compensation committees as a part of corporate boards.
D. Detailed disclosures of executive compensation.

Answer 1

The "say on pay" rule recently established by the Securities and Exchange Commission requires nonbinding shareholder votes on executive pay, increasing transparency and accountability in corporate governance.

Step-by-step explanation:

The "say on pay" rule recently established by the Securities and Exchange Commission requires nonbinding shareholder votes on executive pay (Option B). This means that shareholders are given the opportunity to express their opinion on the compensation of top executives, although the vote is not legally binding. The goal of this rule is to increase transparency and accountability in corporate governance by allowing shareholders to have a voice in executive compensation decisions.