Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission on Tuesday that, if approved, would require most Nasdaq-listed companies to have – or explain why they do not have – at least two different board members, including one who self-identifies as a woman and one who identifies as either an underrepresented minority or LGBTQ +, the stock exchange said on Tuesday. regarding their board, Nasdaq said in a statement.
Nasdaq stated that the 271-page goal of the archive "is to provide stakeholders with a better understanding of the company's current board composition and to increase investor confidence that all listed companies consider diversity in the context of electing board members."
part of the justification for the new requirements, the Nasdaq proposal presents an analysis of more than two dozen studies that found a link between different boards and better financial development and corporate governance.
According to the proposal, Nasdaq listed companies would be required to publish diversity statistics at board level through its proposed information framework within one year of the SEC's endorsement of the listing rule, the statement said. said.