A committee of a board of directors that sets the
compensation level of senior management. In addition to salary, the
compensation committee determines the level of stock option compensation and
stock warrants. Under the 2002 Sarbanes-Oxley legislation, members of the
compensation committee all have to be independent directors by the middle of
2004. If a company is controlled by another company, it is not subject to the
full independence requirement. The compensation committee also must have a charter
specifying its purpose and the evaluation procedures of the committee.