July 1 initial compliance deadline approaches for compensation committee action under new exchange listing standards
21 June 2013SEC Update
Earlier this year, the SEC approved changes to the listing standards of several national securities exchanges, including the New York Stock Exchange and the NASDAQ Stock Market, to implement SEC Rule 10C-1 under the Exchange Act. As discussed in the SEC Updates we issued on June 29, 2012 and October 4, 2012, which are available here and here, Rule 10C-1 directs the national securities exchanges to establish listing standards concerning the independence of compensation committee members, the authority of compensation committees to engage advisers, and the factors that compensation committees must consider before selecting an adviser to assess the adviser’s independence. The first compliance deadline under the NYSE and NASDAQ standards is July 1 of this year. Listed companies will have to complete additional compliance actions in 2014.