The diversity of corporate boards of directors has received increasing scrutiny both by the public and by public policymakers in recent years. In the most recent example of how regulated entities have responded, late last year the Nasdaq Stock Market petitioned the U.S. Securities and Exchange Commission (SEC) to approve mandatory annual reporting rules for Nasdaq-traded companies requiring them to disclose certain Board diversity data. In addition, Nasdaq asked the SEC to issue a regulation to require these same companies to have two diverse directors or explain why they do not.
A divided SEC, with the five-member agency’s two Republicans dissenting, has now approved Nasdaq’s proposal. Implementation is to be phased in, with covered businesses having two years to begin complying. Most covered employers will have four years to fully comply.
Members of the Center for Workplace Compliance (CWC) can read more here.