The New York Stock Exchange (“NYSE”) and the Nasdaq Stock Market (“Nasdaq”) each recently released proposed new listing standards related to compensation committees and compensation advisors. The proposed listing standards, mandated by SEC Rule 10C-1, adopted on June 20, 2012, are still subject to approval by the Securities and Exchange Commissions (the “SEC”). Rule 10C-1, which has been adopted as required by the Dodd Frank Act, required the national securities exchanges to adopt rules related to the independence of compensation committees and compensation advisors.
Specific requirements imposed by Rule 10C-1 are listed in the table below, together with the corresponding proposals by the NYSE and Nasdaq designed to address the SEC requirements. The NYSE has proposed amending Sections 303A.00, 303A.02(a) and 303A.5 of its Listing Company Manual and Nasdaq has proposed amending Sections 5605, 5605A, and 5615 of the Nasdaq Listing Rules.
Click here to see table.