(MARKET WATCH) – The Securities and Exchange Commission on Friday approved Nasdaq’s proposal to require diversity disclosures for companies’ boards in its listing rules.
Among other things, the Nasdaq NDAQ, +0.02% proposal would ask companies to explain why they don’t meet race and gender targets for company boards, which will differ depending on the company’s size and other factors. For most companies in the nation, the objective would be at least two “diverse” board members: one female, plus one member of an underrepresented minority group or someone who identifies as LGBTQ.
It’s the latest effort in a widespread but controversial push for board diversity that has included legislation in California, which was the first state to mandate diversity on boards of publicly held companies but is facing legal challenges to the law.
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