The SEC’s proposal also would require new disclosures from companies concerning their use of compensation consultants and conflicts of interest.
In particular, the proposal requires the "listing standards" to address the independence of the members on a compensation committee, the committee’s authority to retain compensation advisers, and the committee’s responsibility for the appointment, payment and work of any compensation adviser.
Once an exchange’s new listing standards are in effect, a listed company must meet these standards in order for its shares to continue trading on that exchange.
