Issues for Compensation Committees to Consider

Issues for Compensation Committees to Consider

May 29 2013

Picture1In response to new SEC and stock exchange rules, Compensation Committees at most public companies must: (i) ensure that their Committee charter incorporates any changes required as of July 1, 2013; (ii) review, evaluate and disclose whether a Compensation Consultant has a conflict of interest, and if so, the nature of such conflict and how it is being addressed; and (iii) consider the independence of any Compensation Adviser prior to selecting or receiving advice from such Adviser.  These changes have been adopted to meet requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010.  Certain controlled companies and smaller reporting companies are exempt from the new requirements.

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