• Nasdaq and NYSE Propose Rules Regarding Independence of Compensation Committees and Compensation Advisers
  • October 25, 2012 | Author: Paul C. Connors
  • Law Firm: Hinckley, Allen & Snyder LLP - Boston Office
  • On September 25, 2012, in response to final rules (the "SEC Final Rules") issued by the Securities and Exchange Commission (the "SEC") on June 20, 2012, Nasdaq and the New York Stock Exchange (the "NYSE") proposed rules regarding the independence of compensation committees and their advisers. For previous discussion of the SEC Final Rules, which implemented Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), please see our earlier Securities Update. In general, the Nasdaq proposed rules (the "Nasdaq Proposed Rules") are more complex than the NYSE proposed rules (the "NYSE Proposed Rules", together with the Nasdaq Proposed Rules, the "Proposed Rules"). The Proposed Rules are subject to SEC approval. On October 9, 2012, the SEC issued notices of filings of proposed rule changes relating to both the Nasdaq Proposed Rules and the NYSE Proposed Rules soliciting comments on the Proposed Rules. Comments are due to the SEC by November 5, 2012.