Nasdaq submitted a proposal with the Securities and Exchange Commission that would provide greater diversity and transparency across boards of directors.
Nasdaq is pushing for greater diversity among the more than 3,000 companies listed on its exchange. The exchange operator filed a proposal Tuesday asking the Securities and Exchange Commission to approve new listing rules surrounding the makeup of companies’ boards of directors, as well as greater transparency around who fills the seats in the boardroom. Under the proposal, the majority of companies will be required to have at least two diverse board directors: one woman and one person who identifies as either an underrepresented minority or LGBTQ. If a company cannot meet these requirements, it will not be delisted, but it will need to explain why it cannot satisfy the goals. Failure to publish board data, however, could result in delisting. Should the SEC approves the plan, all companies would have to disclose board-level diversity statistics within one year of the policy being passed.
