Which of the following is not an example of a trending SEC "hot topic"?

Prepare for the NACD Certification Exam with flashcards and multiple choice questions. Each question comes with hints and explanations to aid your understanding. Ensure you are fully ready for your test!

Stock options are not currently viewed as a trending SEC "hot topic" compared to the other options listed. The focus of the SEC has shifted in recent years to address emerging issues that have significant implications for investors and the broader financial markets.

Climate risk disclosure, for example, has gained prominence as stakeholders increasingly demand transparency regarding how companies are addressing climate change and its potential financial impacts. The SEC has been actively working to provide guidance on this topic to help ensure consistent disclosures.

Data privacy and cybersecurity are also pressing issues, as the rise in digitalization has led to heightened concerns about the protection of sensitive information. The SEC has shown an interest in how companies are managing cybersecurity risks and whether these risks are being properly disclosed to investors.

Executive compensation practices remain relevant but are typically discussed within the context of broader corporate governance trends. While they can be significant, they do not carry the same level of urgency and focus from regulators as the themes of climate risk and cybersecurity do in today's landscape.

Therefore, the choice of stock options as not being a trending hot topic reflects the SEC's current priorities and the areas of growing concern among regulators, investors, and the public.

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