NYSE companies have until July 1 to amend their compensation committee charters to reflect the new requirements relating to the independence of compensation consultants and other advisors. See our previous discussion here. Nasdaq companies do not have to have amended their compensation committee charters by July 1, but do have to have formally given the compensation committee the authority to retain, supervise and compensate independent advisors by that date.

In addition, both NYSE and Nasdaq companies must examine the independence of any compensation consultants or other advisors to the compensation committee which are retained by the committee or which provide the committee with advice on or after July 1. The examination must occur before the advisor is retained or the advice is provided. Companies which have not already done so should begin the process of determing who the compensation committee’s advisors are and obtaining the necessary information from the advisors to allow the committee to examine their independence before the July 1 deadline.