On June 20, 2012 the Securities and Exchange Commission adopted
rules under the Securities Exchange Act of 1934 (Exchange Act),
that direct the national securities exchanges to adopt listing
standards for public company boards of directors, compensation
committees, and compensation advisers. These rules implement
Section 10C of the Exchange Act enacted as part of 2010's
Dodd-Frank legislation. The SEC has amended its proxy disclosure
rules correspondingly to require new disclosures from companies
about their use of compensation consultants and conflicts of
interest.
LISTING STANDARDS
The new rules regarding listing standards will take effect 30
days after publication in the Federal Register. The exchanges will
then have 90 days after effectiveness to propose listing standards
that comply with the new rules and one year after effectiveness to
finalize the rules and receive approval from the SEC. Depending on
how fast the SEC and the exchanges work the new
