Boards of directors in the United States are required to staff their compensation committees exclusively with outside directors.

Question

Quizplus · Accepted Answer

According to the Securities and Exchange Commission (SEC) rules, at least two-thirds of compensation committees of publicly traded companies must consist of independent directors who are not officers or employees of the company. Therefore, the compensation committee can include a mix of inside and outside directors, but the majority must be outside directors.

Boards of Directors in the United States Are Required to Staff