SEC Approves Nasdaq Diversity Proposal

On February 26, 2021, Nasdaq filed Amendment No. 1¹ to its initial proposed rule change regarding board diversity disclosures, in response to more than 200 comment letters received from Nasdaq-listed issuers, institutional investors, asset managers, legislators, advocacy organizations, law firms, individual board members and other citizens. On August 6, 2021, the SEC issued an order approving Amendment No. 1. The order also approves Nasdaq's proposal to provide one-year of complimentary access for eligible Nasdaq-listed companies to a board recruiting service to help advance diversity on company boards.

A substantial majority of substantive comment letters received were in favor of the Amendment. However, a number of supporters of the Amendment, including several advocacy organizations, including the National LGBT Chamber of Commerce (NGLCC), U.S. Black Chambers, Inc. (USBC), U.S. Hispanic Chamber of Commerce (USHCC), and U.S. Pan Asian American Chamber of Commerce