The Advisors' Blog

– Broc Romanek, CompensationStandards.com

Last week, I blogged about the Nasdaq has amended its re-proposal to elicit disclosure about third parties paying directors. The NYC Bar Association Securities Regulation Committee recently submitted a comment letter on the Nasdaq proposal, recommending that the Nasdaq proposal not be adopted and that it should be determined whether the SEC’s existing rules requiring disclosure of director compensation, including compensation paid by third parties, cover the disclosures in the Nasdaq proposal. The logic is that the SEC’s ongoing disclosure effectiveness project would be a more effective and appropriate way to address any new disclosure requirements – in order to promote comparable disclosures to investors, regardless of the exchange on which the company is listed.

The NYC Bar Association also argues it would be a way to obtain a wider range of comment from the public. There have only been three other comment letters submitted. That’s one reason why the comment period was extended to the 4th of July…