Over the last few weeks, we have seen a flurry of activity
concerning diversity in the boardroom. The Nasdaq Stock Market LLC
(Nasdaq) proposed to the Securities and Exchange Commission (SEC) a
new diversity rule and proxy advisory firms Institutional
Shareholder Services (ISS) and Glass Lewis each announced expanded
diversity proxy voting guidelines. These developments continue a
trend of increased investor focus on board diversity.
Nasdaq Proposes Diversity Requirement
Nasdaq filed a
proposal this week that, if approved by the SEC (subject
to certain exceptions), would ultimately require boards of
Nasdaq-listed companies to have at least two diverse directors,
consisting of at least one director whose self-identified gender is
female and at least one director who self-identifies as either an
underrepresented minority or LGBTQ+ (in each case as defined in the
proposal).
