Amendment eliminates prohibition on the receipt of
compensatory fees and aligns NASDAQ listing rules with NYSE
standards.
On December 11, 2013, NASDAQ Stock Market LLC amended its
listing standards relating to the independence of compensation
committee members to remove the prohibition of the receipt of
compensatory fees by compensation committee members.1
The amended rules would require the board of directors of
NASDAQ-listed companies to only consider the receipt of
compensatory fees as a factor in determining director independence
for purposes of serving on the compensation committee. The
amendment also provides additional guidance on the amended listing
standards, including the application of the second part of the
independence test relating to the director's affiliate
relationship with the company. As a result of this amendment,
NASDAQ's compensation committee independence rules are now
aligned with the standards adopted by the New York Stock Exchange
(NYSE)
