Nasdaq Wants More Corporate Board Diversity for Listed Companies

By Timothy Sykes

Last updated on April 18, 2022
Nasdaq Wants More Corporate Board Diversity for Listed Companies Thumbnail

The Nasdaq stock exchange has filed a request with the SEC to make a major change to listing requirements for the companies on its exchange.

If approved, the new rule will require all companies to disclose the diversity of their board of directors within one year.

It will also require most Nasdaq-listed companies to have at least two diverse directors, including one female board member and one who is an underrepresented racial minority or LGBTQ.

Boards must bring on the first director within two years, and the second within 2–3 years.

Failure to comply could result in the company being delisted from the Nasdaq exchange.

According to a Nasdaq spokesperson in a statement, an estimated 85% of companies listed on the Nasdaq already meet the first criteria of having one board member be a woman or from an underrepresented community.

Women and minority groups have been underrepresented in corporate boardrooms for a long time. The push for corporate diversity is growing.

California passed a similar law in October. It mandated all California based publicly trading companies have at least one board member from an underrepresented community.

“Corporate diversity, at all levels, opens up a clear path to innovation and growth.” Nasdaq President Nelson Griggs said in a statement.

Posts contain affiliate links. Timothysykes.com may get compensated for affiliate posts and purchases through links

Share

How much has this post helped you?

star star star star star
Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

Leave a Reply