Executive Summary
Our Securities Group explains what kinds of disclosure are
expected by Nasdaq's Board Diversity Rule and what kinds of
companies are expected to report.
- Different transition periods for different listing tiers
- Reporting is mandatory, but meeting the objective
isn't
- Diversity recruiting services available for companies that want
it
On August 6, 2021, the SEC approved Nasdaq's Board Diversity
Rule, which is designed to provide stakeholders with insight into a
company's current board composition and encourage board
diversity for companies.
Board Diversity Objectives
Under the new rule, each Nasdaq-listed company, subject to
certain exceptions, must publicly disclose information on the
self-identified gender and racial characteristics and LGBTQ+ status
of the company's board of directors. All companies listed on
Nasdaq's U.S. exchange will need to use the Board Diversity
Matrix found here, or a format substantially similar,
