NYSE And Nasdaq Modify Bright Line Tests For Director Independence

NYSE And Nasdaq Modify Bright Line Tests For Director Independence The New York Stock Exchange (NYSE) and the Nasdaq Stock Market each recently modified certain bright line tests to be used when determining director independence for purposes of their corporate governance listing standards.

Both the NYSE and Nasdaq amended the respective bright line direct compensation thresholds they use to determine director independence. These thresholds have been amended such that the level of direct compensation below which a director will remain independent will be increased from US$100,000 annually to US$120,000 annually, to conform with the threshold set forth in Item 404(a) of SEC Regulation S-K.