After nearly a year of review, the U.S. Securities and Exchange Commission has approved a proposal from Nasdaq to enhance diversity and inclusion in company board rooms. The U.S.-based stock exchange will now require all listed companies to disclose board-level diversity using a standard template, to have at least two directors from underrepresented groups, “including one who self-identifies as female and one who self-identifies as either an underrepresented minority or LGBTQ+,” or explain why they do not.
Boards Need Real Diversity, Not Tokenism
Nasdaq’s new diversity requirements are a bare minimum. To make real progress, boards have to go further.
August 31, 2021
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Summary.
The U.S. stock exchange has won approval for a new rule that requires corporate boards to become more diverse. Now companies must implement that–and go beyond the numerical requirements and box-checking to create a thoughtful, purposeful solution.