Comment Letters: The Definition of Independent Directors Under the Listing Rules of the Stock Exchanges
12 Pages Posted: 2 Nov 2012
Date Written: October 31, 2012
Consistent with Rule 10C-1, the NYSE and NASDAQ have proposed listing rules designed to regulate compensation committees of the board of directors. The two proposals, among other things, address the factors that must be considered in determining director independence. These comment letters, among other things, assert that the exchanges must explicitly require the consideration of fees paid to directors for service on the board and personal or business relationships between directors and executive officers.
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