Women and Underrepresented in Boardrooms Now a Mandate for Nasdaq Listed Companies
Nasdaq Inc. recently filed a proposal to require Nasdaq-listed companies to have or explain why they don’t have two diverse board directors. They filed the proposal with the U.S. Securities and Exchange Commission and asks companies to consider a person who identifies as a woman, as well as a person of color or LGBTQ+.
In order for foreign companies and smaller businesses to continue as Nasdaq-listed businesses, they would only have to adhere to having at least two women represented on the board. Companies will have two years from the time of approval by the SEC to have a diverse board in place or they risk being delisted.
Studies have found a link between board diversity and better economic prospects. Nasdaq CEO Adena Friedman talked about why the stock exchange made this move, “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.”
The Realist Woman’s take:
I didn’t see this coming but this is great news. I would love to believe that in order for women to be represented in board rooms, one wouldn’t have to mandate it as policy. But because we live in a world where the patriarchal rules, it takes a government, company, or industry of influence to mandate a certain number or percentage of women in the boardrooms of the corporate world.