The Nasdaq will demand more diversity in the boards of directors of companies

Business

By CAPosts 02 December, 2020 - 05:01am 43 views

Nasdaq applied to the United States Securities and Exchange Commission (SEC) for authorization to require more diversity on company boards of directors. Under the proposed rules, most companies listed on Nasdaq in the United States would have to include at least one director who identifies as female and one who identifies as an underrepresented minority or LGBTQ, Nasdaq said in a statement Tuesday.

© iStockphoto The Nasdaq wants all listed companies to disclose diversity statistics.

“Nasdaq's purpose is to champion inclusive growth and prosperity to drive stronger economies,” Nasdaq CEO Adena Friedman said at the notice. "We believe this listing rule is a step in a broader journey to achieve inclusive representation across the corporate sector in the United States." Companies are facing increasing pressure from investors and activists to improve diversity in their senior positions and be more transparent about the composition of their workforce. In a recent survey, 25 of America's largest companies were willing to release a copy of the form as it is filed with the Equal Employment Opportunity Commission. The proposed rule would also require all Nasdaq-listed companies to disclose diversity statistics regarding their directors. Foreign companies could meet the requirement by including two female directors

Source: MSN