The SEC has adopted rules requiring disclosure of compensation consultant conflicts of interest and directing the NYSE and Nasdaq to propose standards relating to the independence of compensation committees and evaluation of adviser independence. The disclosure rule applies to proxy statements in connection with an annual or special meeting to be held for the election of directors on or after January 1, 2013. The exchanges must propose their independence standards by September 25, 2012; whether they will be in effect for the 2013 proxy season is not yet clear. The new rules were adopted substantially as proposed in March 2011. We discuss in this alert, the new rules and certain actions that should be taken now to prepare.
To read the Alert please follow this link.