Nasdaq proposes new listing standards requiring board diversity and disclosure
Nasdaq Inc. filed Tuesday a proposal to adopt new listing rules, aiming to require board diversity and disclosure. If approved by the Securities and Exchange Commission, all companies listing on the Nasdaq exchange will have to publicly disclose "consistent, transparent diversity statistics" regarding their board of directors. And most Nasdaq companies would have to have, or explain why they don't have, at least two "diverse" directors, including one female and one who self-identifies as either "an underrepresented minority" or LGBTQ+. "Nasdaq's purpose is to champion inclusive growth and prosperity to power stronger economies," said Chief Executive Adena Friedman. "Our goal with this proposal is to provide a transparent framework for Nasdaq-listed companies to present their board composition and diversity philosophy effectively to all stakeholders; we believe this listing rule is one step in a broader journey to achieve inclusive representation across corporate America." Nasdaq's stock, which rose 1.2% in premarket trading, has rallied 19.5% year to date through Monday, while the Nasdaq Composite has run up 36.0% and the S&P 500 has gained 12.1%.
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