compensation consultants

SEC Proposed Rules for Compensation Committees and Consultants

On March 30, the SEC proposed rules directing the national securities exchanges to adopt listing standards for the compensation committee of a company’s board of directors and compensation advisers, as required by the Dodd-Frank Act. The proposal also would require new disclosures for compensation consultants and conflicts of interest, and “listing standards” to address: (i) the independence of the members on a compensation committee; (ii) the committee’s authority to retain compensation advisers; and (iii) the committee’s responsibility for the appointment, payment, and work of any compensation adviser. Once an exchange’s new listing standards are in effect, a listed company must meet these standards in order for its shares to continue trading on that exchange. Comments must be submitted by April 29. SEC Release.