Which of the following is true of the Dodd-Frank Act with regard to regulating executive compensation?
A) Shareholders were allowed a nonbinding vote on executive compensation, as directed by the Federal Reserve.
B) Company executives received lower compensation when firms sold mortgage-backed securities and derivatives.
C) Companies cannot take back compensation if it is based on inaccurate accounting statements.
D) Only independent directors of a company could sit on compensation committees of the board.

Question

Quizplus · Accepted Answer

The Dodd-Frank Act requires that only independent directors serve on the compensation committees of a company's board, ensuring that executive compensation decisions are made without conflicts of interest.

Which of the Following Is True of the Dodd-Frank Act