Nasdaq-listed firms to meet board diversity targets

Nasdaq-listed firms to meet board diversity targets

August 16, 2021, Global Risk Regulator

Mellissa Campbell Duru was quoted in Global Risk Regulator about the Nasdaq’s proposal on board diversity. According to Mellissa, “Firms that are already in compliance will have an opportunity to showcase their leadership via the required disclosures.” She adds, “Firms not yet meeting the diverse board objectives, will be afforded the opportunity, time and flexibility to showcase how they are progressing and to explain why they have not yet met the diversity objectives in the timeframe provided by the rules.”

Mellissa also explained that smaller companies and foreign firms, of which many are listed on Nasdaq, will be given some latitude. Mellissa stated, “[They] may meet the diversity objectives by having two female directors, or in the case of foreign issuers, referencing diversity characteristics of underrepresented individuals based on the country where the firm maintains its principal executive office. Those with five or fewer board members need only have, or explain why they do not have, at least one diverse director.”