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According to the say-on-pay rule of the Dodd-Frank Act, public companies must hold shareholder votes on executive compensation at least once every _____ years.

A) One
B) Two
C) Three
D) Four

User Aberger
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1 Answer

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Final answer:

The say-on-pay rule in the Dodd-Frank Act requires public companies to have shareholder votes on executive compensation at least every three years, making option C the correct answer.

Step-by-step explanation:

According to the say-on-pay rule of the Dodd-Frank Act, public companies must hold shareholder votes on executive compensation at least once every three years. Therefore, the correct answer is C) Three.

The say-on-pay provision is a corporate governance response aimed at increasing the accountability of corporate executives to their shareholders by allowing the latter to have a direct vote on top executives' compensation packages. This provision was introduced to ensure that there is transparency and fairness in how executives are remunerated, giving shareholders a voice in the process. While the vote is advisory and not binding, it ensures that shareholders can express their opinion regarding the appropriateness of executive pay packages.

User Deleteman
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