New NASDAQ Rule Requires Disclosure of Director Compensation from Third Parties
- Lead to conflicts of interest among directors and impair their ability to perform their duties as directors ; and
- Promote short-term results over creating long-term value.
Under the amendment, a listed company will be required to publicly disclose, on or through its website, or in its information or proxy statement for any stockholders' meeting at which directors are elected (or, if it does not file proxy or information statements, in its annual reports to the SEC), the material terms of all arrangements for such compensation or other payment.
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