Under new NYSE and Nasdaq listing standards that take effect on July 1, 2013, a compensation committee may receive advice from legal counsel, as well as compensation consultants and other advisors, only after considering six independence factors. In the February edition of the Public Company Advisor, we provided an overview of the new NYSE and Nasdaq listing standards.

Where outside legal counsel is directly engaged by a compensation committee, or is providing advice directly to a compensation committee, it is clear that the compensation committee must consider the independence of such counsel prior to receiving the advice.