SEC Approves Nasdaq Board of Administrators' Variety Proposal – Enterprise Insurance
(Reuters) – The U.S. The Securities and Exchange Commission approved a proposal by public exchange operator Nasdaq Inc. requiring its publicly traded companies to have various boards of directors or to explain why they don't.
The proposal requires companies to have two different directors, including one who identifies as female and another as an underrepresented minority or LGBTQ +, or explain why this is not the case. Companies also need to make the diversity of their boards public.
Women and minorities are underrepresented in the top echelons of companies, leading to a renewed assessment of racial and gender diversity in Corporate America.
California and Illinois also have diversity laws for corporations based in their states.