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Join the Securities Litigation and Enforcement Group on LinkedInNasdaq to Defend Board Diversity Push After California Setbacks
A three-judge panel of the US Court of Appeals for the Fifth Circuit will hear oral arguments on Monday in an appeal of a Securities and Exchange Commission decision approving new Nasdaq Inc. rules. The tech-heavy stock exchange is requiring its listed companies to have diverse corporate boards or explain why they don’t. The conservative […]
Nasdaq’s rule on board diversity is a good first step, not a gold standard | Fortune
Nasdaq’s Board Diversity Rule goes into effect this month. Corporations listed on the U.S. exchange will be required to disclose the ethnic and gender makeup of their boards. Companies will have one year from the time of submission to provide an explanation as to why they do not have at least two diverse board members […]
Crypto Becomes Next Financial Sector Under US Lawmakers’ Diversity Lens
Rep. Maxine Waters (D-Calif.), the chairwoman of the House Financial Services Committee, has asked 20 of the largest cryptocurrency firms doing business in the U.S. to explain their hiring practices as the panel adds the digital assets industry to the financial sectors it has questioned about employment diversity. Waters, who is also leading an effort […]
2022 S&P 500 Board Diversity Snapshot
The snapshot also highlights proxy disclosures related to veterans and directors with disabilities and provides advice to boards for increasing refreshment and building a robust — and diverse — board talent pipeline. Among the highlights: 72% of the incoming S&P 500 class of directors come from historically underrepresented groups. 32% of all S&P 500 directors […]
Racial and Ethnic Diversity on U.S. Corporate Boards – Progress Since 2020
As the following graph demonstrates, 2022 has set a record by being the first year when all S&P 500 companies included at least one racially/ethnically diverse director, with the number of non-diverse S&P 500 boards going from 11 percent in 2020 to 5 percent in 2021 and zero in 2022. A record 36 percent of […]
California law requiring women on corporate boards struck down – Los Angeles Times
A California law that required companies primarily based in the state to have women on their corporate boards has been ruled unconstitutional by a Los Angeles County Superior Court judge. In a 23-page ruling filed Friday, Judge Maureen Duffy-Lewis found the state could not prove that the “use of a gender-based classification was necessary to […]
Board Diversity Laws ‘Aren’t Optional,’ California AG Rob Bonta Warns – Bloomberg
The California Secretary of State posts reports on the status of compliance with the law. The state may impose fines, ranging from $100,000 to $300,000 per violation. So far, there have been few signs of enforcement. For those that don’t adhere to the law, “there are other steps that we can take.” The laws “aren’t […]
As Corporate Boards Pursue Diversity, Director Training Programs Spring Up – WSJ
U.S. companies are turning to programs aimed at preparing women and people of color for corporate board roles in a bid to comply with calls from regulators and investors to diversify their directors. Law firms, universities and current directors of companies have launched new or expanded programs over the past few years to coach prospective […]
Goldman asset management arm takes tough stance on companies’ board diversity | Financial Times
Goldman Sachs has said its asset management business will vote against big companies that do not have a minimum number of female and minority board members from next year, in a decision that could affect thousands of companies. Beginning in March 2022, Goldman Sachs Asset Management will require companies globally to have at least two […]
Nasdaq’s Plan for Diversity on Corporate Boards Is Decried by Senate Republicans – WSJ
A group of senate Republicans decried Nasdaq’s push for greater diversity on corporate boards, saying it interfered with board members’ duty to govern in the best interests of shareholders and could harm financial performance. In a letter on Friday, all 12 Republicans on the Senate Banking Committee called on the Securities and Exchange Commission to […]