SEC Approves Nasdaq’s Board Diversity Rules

On August 6, 2021, the Securities and Exchange Commission (“SEC”) adopted the Nasdaq Stock Market LLC’s (“Nasdaq”) proposed board diversity rule. The rule is intended to encourage greater board diversity by requiring board diversity disclosures for Nasdaq-listed companies. As explained in more detail in our Fall 2021 Corporate Communicator, the new diversity rule does not mandate quota’s or specific numeric targets for achieving diversity on corporate boards. Rather, the new rule establishes a disclosure framework based on a minimum diversity objective and can be characterized as a “comply or explain” model.

For those interested in learning more about the proposed board diversity rule and diversity, equity and inclusion more broadly, please join me and my partner Marian Zapata-Rossa and the Phoenix Chapter of NASPP on September 29, 2021 from 12:00pm – 1pm PST for a presentation on Diversity, Equity and Inclusion in the 2021 Workplace.  If you are interested in attending our September 29, 2021 program, you can register here.