Fact Sheet on Compensation Committee Independence

In conjnction with the issuance of the Secretary’s statement, the Treasury has also issued a Fact Sheet on its proposal to give the SEC authority to ensure that compensation committees are sufficiently independent.

Document Excerpt

 

We will propose legislation that will give compensation committees greater independence, just as Sarbanes-Oxley did for audit committees. The legislation will direct the SEC to promulgate rules requiring companies listed on national securities exchanges to meet exacting standards for independence. Under these rules, not only would compensation committee members be truly independent from management, but the committee’s compensation consultants and legal counsel would be answerable only to the committee.

Link http://www.treas.gov/press/releases/reports/fact_sheet_indepcompcmte.pdf

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