SEC to Natl Exchanges – Adopt Compensation Committee Listing Stds

On June 20th, the Securities and Exchange Committee “directed” national securities exchanges to adopt certain listing standards for public company compensation committees of corporate boards of directors.  The Dodd-Frank Act mandated that the SEC developed these new regulations, which directs national exchanges to issue guidance addressing the:

  • Independence of compensation committee members
  • Committee’s responsibility for appointing, compensating, and supervising the work of a compensation adviser, and
  • Compensation committee’s authority to retain compensation advisers and the independence of those advisers.

Complying with the new listing standards, once adopted by a national exchange, will be a requirement for a company in order to retain their listing.

A fact sheet summary and the full text of the new regulation is posted on the SEC website (www.sec.gov).

 

 

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About docjonz

I am an Associate Professor of accounting at Hofstra University in Hempstead, NY. Additionally, I have more than 30 years of professional accounting experience in various capacities including auditing, accounting standard setting and corporate accounting policy.
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