Who Should Represent Board Compensation Committees?
April 9, 2013, 12:35 PM EDT
Law360, New York (April 9, 2013, 12:35 PM EDT) -- During the last decade, much of the blame for “excessive compensation” was placed on supposedly conflicted compensation consultants. Since then, Congress and the U.S. Securities and Exchange Commission have promulgated rules that strongly discourage public companies from using the same compensation consultant as management.
Dodd-Frank Act Section 952 (b) provides that the compensation committee of a publicly traded company may only select a compensation consultant, legal counsel, or other adviser to the committee after taking into consideration the factors identified by the SEC and the applicable...