Diving Into Board Diversity

New Nasdaq Board Diversity Requirements

On 1 December 2020, the Nasdaq Stock Market LLC ("Nasdaq")  proposed new listing requirements to the Securities and Exchange Commission ("SEC") which are aimed at advancing diversity among the board of directors of Nasdaq-listed companies ("Proposal").

The Proposal which is still subject to public comment and SEC approval seeks to introduce the new Rule 5605(f) on Diverse Board Representation and Rule 5606 on Board Diversity Disclosure, which (subject to certain exceptions¹) would collectively require Nasdaq-listed companies to: 

1. have at least one director who self identifies as a female²; and

1. have at least one director who self identifies as an Underrepresented Minority³,