In recent years, the diversity of corporate boards of directors has received increasing scrutiny both by the public and by public policymakers. In the most recent example of how affected entities have responded, the self-regulated Nasdaq Stock Market has petitioned the U.S. Securities and Exchange Commission (SEC) to impose mandatory reporting rules on Nasdaq-traded companies requiring the disclosure of certain diversity data annually, as well as issue a regulation requiring these companies to have two diverse directors, or explain why they do not. If approved by the SEC, the new requirements would be phased in beginning one year after approval.
In contrast to the better-known New York Stock Exchange (NYSE), companies that trade on the Nasdaq Exchange tend to be more technology focused – and newer than most NYSE companies. A number of CWC member companies trade on the Nasdaq, and will be subject to these new requirements if approved by the SEC.
Members of the Center for Workplace Compliance (CWC) can read more here.