What are the duties of a corporate compensation committee?
Companies listed on the New York Stock Exchange (NYSE) must have a compensation committee. According to NYSE’s Corporate Governance Rules, the compensation committee must be composed of independent directors, and must have a written charter that addresses the committee’s purpose and responsibilities, which must include: producing a compensation committee report on executive officer compensation which must be included in the company’s annual proxy statement or in the company’s annual report; reviewing and approving corporate goals and objectives relevant to CEO compensation, evaluating the CEO’s performance in light of those goals and objectives, and either as a committee or together with the other independent directors (as directed by the board), determining and approving the CEO’s compensation level based on such evaluation (discussions regarding CEO compensation with the board generally are not precluded, as it is not the intent to impair communication among board members); making re
