SEC Finalizes NYSE and NASDAQ Rules Regarding Compensation Committee and Compensation Adviser Requirements

Womble Bond Dickinson
Contact

Earlier this month, the Securities and Exchange Commission (the “SEC”) finalized rules approving the New York Stock Exchange LLC (“NYSE”) and The NASDAQ Stock Market LLC (“NASDAQ”) proposals regarding compensation committee independence and compensation adviser requirements. As discussed below, listed companies must comply with certain provisions of the new rules by July 1, 2013, so companies that have not already done so should promptly assess actions that must be taken in order to timely comply with the new rules. The remainder of this alert summarizes the key provisions of the new rules.

Background

As mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), in June 2012, the SEC adopted Rule 10C-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Rule 10C-1 requires national securities exchanges to adopt listing rules consistent with the compensation committee and compensation adviser requirements imposed under the Dodd-Frank Act. In response, the NYSE and the NASDAQ proposed amendments to their listing standards, which were approved by the SEC earlier this month.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Womble Bond Dickinson | Attorney Advertising

Written by:

Womble Bond Dickinson
Contact
more
less

Womble Bond Dickinson on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide