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Chapter 21: Proxy Statements Guide Quiz
Test your knowledge of the proxy statements chapter material!
1 / 10
The reported values of Stock-Based Compensation are:
Since the true value will fluctuate over time with a company’s stock price, these values are estimated. Read more on page 232.
Correct! Since the true value will fluctuate over time with a company’s stock price, these values are estimated.
2 / 10
Any perk or benefit provided to executives that is worth over ______ must be itemized on the proxy statement.
Answer can be found on page 233.
Correct!
3 / 10
What is a company’s final proxy statement filed as in EDGAR?
Answer can be found on page 231.
Correct! This is also referred to as a “definitive” proxy.
4 / 10
Revision proxy statements are ______ other types.
5 / 10
The sum of all the other columns in the Summary Compensation Table is called the:
6 / 10
Where can proxy statements be found?
Correct! Proxy statements can always be found on the SEC’s EDGAR database, and you may also be able to find them on corporate websites or investor-relations pages too.
7 / 10
True or false: All news organizations use the “total pay” as reported on the proxy statement in their reporting.
Some news organizations have their own formulas they use to calculate “total” pay. Read more on page 233.
Correct! Some news organizations have their own formulas they use to calculate “total” pay.
8 / 10
True or false: Every company files their proxy statements at the end of the year.
Different companies end their fiscal year at different times, so this varies. Read more on page 231.
Correct! Different companies end their fiscal year at different times, so one company may file their proxy statement in January while another has their proxy statement come out in April.
9 / 10
True or false: Shareholder proposals must be accepted by the company.
In the end, these shareholder proposals tend to be advisory proposals, meaning the board can ultimately ignore them. Read more on page 237.
Correct! In the end, these shareholder proposals tend to be advisory proposals, meaning the board can ultimately ignore them.
10 / 10
True or false: Companies are supposed to explain why executives got paid what they did in proxy statements.
Read more on page 234.
Correct! You’ll find this explanation in the Compensation Discussion and Analysis section, though it can be difficult to decipher.
Your score is
The average score is 85%
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