In the United States, the Sarbanes-Oxley Act of 2002 was triggered, in part, by the corporate scandals at Enron, Tyco, and WorldCom among other firms. The act requires that compensation committees be composed entirely of outsiders to avoid the insider corruption seen in these scandals.

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The Sarbanes-Oxley Act of 2002 does not specifically require that compensation committees be composed entirely of outsiders; it focuses more on financial practices and corporate governance reforms.

In the United States, the Sarbanes-Oxley Act of 2002 Was