Nasdaq Compensation Committee Requirements

Keywords: Nasdaq, compensation committee, independence text, compliance certification

Nasdaq recently amended its rules regarding compensation committee independence, bringing them more in line with the corresponding rules of the New York Stock Exchange.

In accordance with Rule 10C-1 under the Securities and Exchange Act of 1934, Nasdaq previously adopted listing standards establishing independence requirements for compensation committee members,¹ but in one key aspect the Nasdaq compensation committee independence test was more stringent than required. As originally adopted by Nasdaq, compensation committee members were prohibited from accepting, directly or indirectly, any consulting, advisory or other compensatory fee from the company or any of its subsidiaries.