Executive Compensation Regulation - Comment Letter - CFA Institute - May 18, 2011
|Final Rule Issue||Effective Date||Compliance Date, Rule Changes||Compliance Date, Disclosure|
|June 27, 2012||July 27, 2012||September 25, 2012||January 1, 2013|
Listing Standards for Compensation Committees
May 18, 2011
The CFA Institute states in its letter that it is unnecessary for the SEC to set rules regarding what types of committees, i.e. compensation committees, a company's board should oversee. The board may already have a different committee that handles the responsibilities of a compensation committee, and in such a case, the SEC should set independence regulation for the director(s) of the already established committee(s).
The letter also suggests that having singular broad definitions for the terms "director independence" and "look-back" is excessive due to the fact that exchanges already provide similar, though separate, definitions for these terms.
It is also recommended that compensation advisers be independent of a company and its management.