What companies and boards of directors need to know about the new independence rules for compensation committees and their advisers - .PDF file.
Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 directs the national securities exchanges to adopt new listing standards applicable to compensation committees and compensation advisers. The Securities and Exchange Commission implemented Section 952 of the Dodd-Frank Act by adopting Rule 10C-1 under the Securities Exchange Act of 1934, as amended, on 20 June 2012. Rule 10C-1 sets forth certain requirements regarding, in part, compensation committee independence, compensation committee authority to retain and be directly responsible for the consultants and advisers it retains, compensation committee analysis of the independence of compensation consultants and advisers, and disclosure of any conflicts of interests concerning compensation consultants.
Click on the link above to download this Latham & Watkins briefing.