On August 6, 2021, Nasdaq’s Board Diversity Rule was approved by the Securities and Exchange Commission (SEC) and will go into effect in August 2022.
Nasdaq’s Board Diversity Rule requires corporations listed on the U.S. Exchange to:
- Publicly disclose board-level diversity statistics using a standardized template; and
- Have or explain why they do not have at least two diverse directors.
Encouraging U.S. listed companies to disclose diversity data on each board’s gender, race/ethnicity and sexual orientation will improve transparency surrounding each company’s current board composition and provide stakeholders with consistent and comparable information.