• U.S. Securities and Exchange Commission Adopts Dodd-Frank Compensation Committee and Adviser Independence Rules
  • July 5, 2012 | Authors: Amy Goodman; Elizabeth A. Ising; Ronald O. Mueller
  • Law Firm: Gibson, Dunn & Crutcher LLP - Washington Office
  • On June 20, 2012, the United States Securities and Exchange Commission (the "SEC") adopted rules under Section 10C of the Securities Exchange Act of 1934, as mandated by Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank"). As mandated by Dodd-Frank, the SEC rules require stock exchanges to adopt listing standards that (1) impose independence requirements on compensation committee members; (2) require companies to authorize compensation committees to retain compensation consultants and other advisers; and (3) require compensation committees to assess the independence of any consultant, legal counsel or other adviser selected by the committee. Stock exchanges have until September 25, 2012, to propose listing standards under these requirements, and must adopt final listing standards no later than June 27, 2013.