Our sister blog, Dodd-Frank.com, recently published summaries of the respective proposed rules for public companies issued by the New York Stock Exchange and the NASDAQ in entries on September 25 and September 26. You may access the summaries through the following links: http://dodd-frank.com/nasdaq-proposes-rules-regarding-independence-of-compensation-committees and http://dodd-frank.com/nyse-proposes-rules-regarding-independence-of-compensation-committees-and-compensation-advisers
Each of the proposed rules must be approved by the SEC. The rules describe facts and circumstances that must be considered when formulating membership of independent compensation committees and in the selection of legal advisors and consultants to the committees that ensure that conflicts of interest are known and minimized. Executive compensation arrangements require approval by an independent compensation committee as provided in Dodd-Frank and the rules of the Securities Exchange Commission.