Exchanges Propose Rules for Compensation Committees under Dodd-Frank: NASDAQ Issuers Face Heightened Requirements

Recently, the NYSE and NASDAQ issued proposed rules implementing provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) and SEC Rule 10C-1 governing compensation committees of listed companies. The proposed rules affect three distinct areas: 1. independence of compensation committee members, 2. independence of compensation committee consultants, legal counsel and other advisers, and 3. compensation committee charters and committee authority. The major changes in each of these areas are discussed in this update.

Read “Exchanges Propose Rules for Compensation Committees under Dodd-Frank: NASDAQ Issuers Face Heightened Requirements.”