Two Reminders for the Compensation Committee: Reconsider Adviser Independence; Nasdaq Companies Must Submit One-Time Certification
Since July 1, 2013, the New York Stock Exchange and the Nasdaq Stock Market have required that a compensation committee of a listed company may select or obtain advice from a compensation consultant, legal counsel or other adviser only after considering six enumerated factors relating to adviser independence. The compensation committee should ensure that, in addition to considering the independence of any new adviser, it reconsiders the independence of existing advisers on at least an annual basis as suggested by the SEC.
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