Nasdaq is pushing to require more diversity on corporate boards. (Source: Getty)
Nasdaq made something of a statement this month when it submitted a proposal to the U.S. Securities and Exchange Commission to adopt new rules relating to board diversity at companies listed on its stock exchange.
If the SEC approves, the rules would require all Nasdaq-listed companies to publicly disclose board director diversity statistics and have or explain why they don’t have at least two diverse directors.
In this context, diversity includes one director who self-identifies as female and one who self-identifies as either part of an underrepresented ethnic minority or as LGBTQ+. Foreign companies and smaller reporting companies could satisfy the new requirement with two female directors.