The U.S. Securities and Exchange Commission has approved the compensation committee listing standards contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new listing standards establish independence requirements for compensation committee members and require compensation committees to consider factors relevant to potential conflicts of interests on the part of compensation consultants, legal advisers and other compensation advisers. Although the final NYSE and Nasdaq rules are similar in many respects, there are differences. We review each set of rules separately and provide some practical considerations for all listed companies.
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