A Practice Note discussing the independence standards relating to compensation committees of boards of directors under Section 16 of the Securities Exchange Act of 1934, as amended (Exchange Act), as well as the requirements of the New York Stock Exchange (NYSE) and Nasdaq Stock Market, which implemented the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). This Note also discusses the independence standards relating to compensation committees under provisions of Section 162(m) of the Internal Revenue Code that are applicable to certain performance-based compensation that was granted before the applicable effective date under the Tax Cuts and Jobs Act of 2017.