Nasdaq proposes rules that would require companies to be diversified on governing boards

Alright, LLC Twitter, this one’s for you: Nasdaq has announced plans to push companies to do the bare minimum to ensure diversity on their boards.

According to ABC News, a proposal submitted Tuesday by the Nasdaq to the US Securities and Exchange Commission would require listed companies to publicly detail the diversity statistics of their boards of directors. Not only that, the proposal would require that company to have at least one “under-represented minority” (LGBTQ or non-white) and a woman on its board of directors. If a company has neither, it could run the risk of being delisted from the stock exchange.

The new rules will eventually need to be approved by the SEC to take effect. Companies based in other countries can meet the diversity requirements on offer by having at least two women on their board.

From ABC News:

Under the proposal, however, companies listed on the Nasdaq will be required to publicly disclose their board diversity statistics within one year of the SEC’s approval of the new rules. Therefore, all companies will need to have a diverse director within two years of the rule being approved by the SEC. Companies listed on the Nasdaq Global Select Market and the Nasdaq Global Market are expected to have two miscellaneous directors within four years and companies listed on the Nasdaq Capital Market are expected to have two miscellaneous directors within five years.

If companies do not meet various board requirements within the allotted time, they will have to provide a public explanation as to why or deal with a possible delisting from the stock exchange.

The folks at Nasdaq seem genuinely excited about the push.

“Our goal with this proposal is to provide a transparent framework for companies listed on the Nasdaq to effectively present their board composition and diversity philosophy to all stakeholders,” said Adena Friedman, CEO of Nasdaq, in a statement. communicated. “We believe this enrollment rule is a step in a larger journey to achieve inclusive representation across US businesses.

Even the ACLU is all about it, with its executive director Anthony Romero praising NASDAQ for “answering the call of the moment.”

What do I think? Well, as a simple nigga in a Green Lantern shirt, my understanding of American stocks and companies is limited. I know what looks like a well-meaning bad idea when I see one.

Look, pushing for diversity at all levels of public and private business is a noble and necessary goal; I will never say the opposite. I can’t help but think, though, that it’s really all about making token hires of employees and that could create potentially unpleasant work environments for anyone taking those seats at the table.

I’m not the first to say this, but the table was not designed for us. These systems are not designed for us. It feels like they’re trying to solve a problem without addressing the root causes, and the culture that made a proposal like this even seems necessary.

I mean, you really don’t think we’re going to start seeing companies coming out like, “Hey, we didn’t just hire a black guy. He’s gay too. And he watched it all Naruto, including filler episodes. It’s like three things here, give us our praise.

Again, I’m just a nigga on a laptop so I might just be looking for storm clouds on a sunny day. Then again, given what we know Business america, it seems like it might just be another half-measure that makes them feel good about “doing their part,” without them actually having to do their part.