8.6.21
On August 6, the U.S. Securities and Exchange Commission (SEC) approved a new disclosure listing rule proposed by stock exchange operator Nasdaq Inc. which sets a new standard for corporate governance by requiring its listed companies to publicly disclose the diversity of their corporate boards. Furthermore, it requires that companies have two diverse directors, including one who identifies as female and another as an underrepresented minority or LGBTQ+, or explain why they do not. The SEC noted that investors have overwhelmingly called for more diverse boards and disclosures around diversity metrics when making investment decisions. The SEC in a statement expressed, “Because enhanced diversity is critically important for investors, the markets, and our economy, we hope this is a starting point for initiatives related to diversity, not the finish line.”