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Chapter 21: Proxy Statements Guide Quiz
Test your knowledge of the proxy statements chapter material!
1 / 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.
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
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.
4 / 10
Who generally files a company’s proxy statement?
Answer can be found on page 231.
5 / 10
Which organization is a good resource if you want an investor’s perspective on pay practices?
Answer can be found on page 237.
6 / 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.
7 / 10
Revision proxy statements are ______ other types.
8 / 10
If information is missing from the proxy statement, where should you look?
Answer can be found on page 238.
Correct! Technically, most of the information commonly found in the proxy can appear in Section III of the 10-K.
9 / 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.
10 / 10
What is not included in the Bonus column of the Summary Compensation Table of a proxy statement?
Answer can be found on page 232.
Correct! Incentive bonuses appear three columns later.
Your score is
The average score is 85%
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