Nasdaq advances diversity initiative....

Refreshingly, in an effort to address the lack of diversity in corporate boards, Nasdaq filed a proposal yesterday with the U.S. SEC for new listing rules on board diversity. If the SEC approves, all companies listed on Nasdaq’s U.S. exchange would need to publicly disclose "consistent and transparent" diversity statistics about their boards. Additionally, Nasdaq-listed companies would need to have--or explain why they do not have--at least two diverse directors, including one who self-identifies as female and one who self-identifies as either an underrepresented minority or LGBTQ. (Foreign companies and smaller reporting companies would have additional flexibility in satisfying this requirement with two female directors).

The stated goal of the proposal is to provide "a better understanding of the company’s current board composition and enhance investor confidence that all listed companies are considering diversity in the context of selecting directors, either by including at least two diverse directors on their boards or by explaining their rationale for not meeting that objective."  Significantly, Nasdaq relied on "two dozen studies that found an association between diverse boards and better financial performance and corporate governance."

Great news and definitely ammunition to use in taking on these tough issues with your organization.