On December 1, 2020, Belinda Vega was quoted in SF Gate on Nasdaq’s proposed requirements for increased diversity on corporate boards.
According to the article, the company filed a proposal Tuesday with the Securities and Exchange Commission (SEC) that, if approved, would require all companies on the exchange to disclose the breakdowns of their boards by race, gender, and sexual orientation. Companies that do not comply could be delisted or kicked off the exchange.
The proposal would also require most Nasdaq-listed companies to have at least two diverse directors or, if they cannot meet the mandate, to explain why not. That could include one board member who is female and one who is either an underrepresented racial minority or LGBTQ. Foreign companies and smaller companies would have additional flexibility in satisfying this requirement with two female directors.
California passed a law earlier this year requiring public companies headquartered in the state to diversify their boardrooms. Those rules require more people from diverse backgrounds be added more quickly to boards than what the Nasdaq rule is proposing.
Vega said that while California’s law faces legal challenges, the Nasdaq changes would have a clearer path, although they could face resistance during vetting by the SEC.
Click here to access the article.