SEC Approves Proposed Nasdaq Rule Requiring Disclosure of Third-Party Compensation to Directors and Director Nominees
On July 1, 2016, the Securities and Exchange Commission (“SEC”) approved a proposed rule filed by Nasdaq, as amended by Nasdaq on June 30, 2016, which would require listed companies to disclose annually any compensation or other payment provided by a third party to the company’s directors or director nominees in connection with their candidacy for or service on the company’s board of directors. While recognizing that “there may be some overlap” with the SEC’s disclosure requirements, the SEC approved Nasdaq’s proposed rule change on an accelerated basis. The rule will be effective July 31, 2016, though interested persons may comment on the rule change through July 28, 2016.