What is the minimum membership requirement for independent directors on the compensation committee?

The minimum membership requirement for independent directors on the compensation committee is crucial to ensure that decisions regarding executive compensation are made without conflicts of interest. Having at least two independent directors on the compensation committee helps to establish a level of oversight and accountability that aligns with good governance practices. This requirement is designed to mitigate potential biases and ensure that the committee operates with a broader perspective.

Involving multiple independent directors fosters a more comprehensive discussion and decision-making process regarding compensation matters, which can lead to fairer and more equitable outcomes. This structure is intended to protect the interests of shareholders and other stakeholders by ensuring that compensation packages are aligned with the company’s performance and long-term strategy.