Nasdaq’s Plan To Require Board Diversity Approved by SEC
With the goal to increase the representation of women, racial minorities and those who identify as LGBTQ+ on US corporate boards, the Securities and Exchange Commission approved a new policy. The rule requires that the nearly 3,000 companies listed on Nasdaq have on their boards at least one woman and one person who self-identifies as a racial minority, or as a member of the LGBTQ+ community.
DCA Insight:
It’s estimated more than three-quarters of listed companies will need to make changes to comply, making this move to encourage board diversity in the US all the more momentous—and likely to influence other markets (i.e. China and Hong Kong’s) to follow suit. DCA has long supported efforts to make public company boardrooms more diverse, working in partnership with Equilar to enable members with a track record of executive experience and board service to be included in Equilar’s Diversity Network, recognized as a leading technology solution for identifying board talent.