As most listed public companies know, as a result of the Dodd-Frank Act, the stock exchanges have adopted rules regarding the independence of compensation committees and their advisers. NASDAQ and the NYSE require the first prong of these rules, which require revisions to compensation committee charters, to be completed by July 1, 2013.
You may find the following resources helpful in updating your compensation committee charters and complying with the rest of the rules:
- Checklist to comply with NYSE rules;
- Checklist to comply with NASDAQ rules;
- A letter from your law firm addressing independence considerations;
- Thoughts on how to update your director and officer questionnaire next year; and
- Possible disclosures for next year.
Check dodd-frank.com frequently for updated information on the JOBS Act, the Dodd-Frank Act and other important securities law matters.