Diversify your Board or face Consequences?
In a year of big moments, today Nasdaq will ask the S.E.C. for permission to adopt a new requirement that all 3,249 companies listed on its main U.S. stock exchange have at least one woman and one diverse (BIPOC, LGBTQ and/or underrepresented) director and start reporting data on their board’sdiversity - or face possible delisting.
Under the proposed rules, diversity data must be disclosed within a year of SEC approval and a diverse director added within two years. Currently, 75% or 2,437 of companies listed on NASDAQ do not meet this basic requirement.
More diverse companies... are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns.
- Why Diversity Matters? McKinsey Report
If the SEC were to approve this request, they would join Germany and the state of California in mandating that boards actively seek to diversify and become more representative of the general population and their current or prospective consumer bases.
At Mavenly Consultants we believe diversity and multiple perspectives are critical assets for companies and multiple research channels continue to show diversity yields profitable benefits for companies.
Looking to diversify your board? We stand ready to help and offer a full range of HR and board related services.
For more information, please visit www.mavenlyconsultants.com.