SEC Approves Final NYSE And NASDAQ Compensation Committee Rules

Companies are required to comply with certain of the new listing standards relating to compensation adviser independence by July 1, 2013.

On January 11, 2013, the Securities and Exchange Commission (SEC) approved proposed amendments to the corporate governance listing standards of the New York Stock Exchange (NYSE) and the NASDAQ Stock Market (NASDAQ) relating to compensation committee and adviser independence requirements. In September 2012, NYSE and NASDAQ proposed these new listing standards (Original Proposals),¹ as directed by the SEC's final rules implementing Section 952 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.² Subsequently, NYSE and NASDAQ submitted several amendments to the SEC, modifying the Original Proposals. The final NYSE and NASDAQ listing standards, as approved by the SEC, are substantially identical to the Original Proposals, as modified by these amendments.