Friday, August 6, 2021
SEC Approves Nasdaq Board Diversity Rule Amendments
The SEC's order is available here. Chairman Gensler's comments on the new rules are available here. In pertinent part, Chairman Gensler offers the following observations:
These rules will allow investors to gain a better understanding of Nasdaq-listed companies’ approach to board diversity, while ensuring that those companies have the flexibility to make decisions that best serve their shareholders. . . .
. . . These rules reflect calls from investors for greater transparency about the people who lead public companies, and a broad cross-section of commenters supported the proposed board diversity disclosure rule. Investors are looking for consistent and comparable data when making decisions about their investments. I believe that our markets work best when investors have access to such information.
The focus on standardized disclosures in this commentary is of particular interest to me.
The order is lengthy and includes copious footnotes with references to the many comment letters received on the Nasdaq rule-making proposal. For those (like me) who research and write in the area, this SEC order is a "must read." I look forward to spending time with it in the near future.