The Securities and Exchange Commission (SEC) on Friday approved rule changes proposed by Nasdaq last year that will put in place a new board diversity “comply or explain” mandate and further require companies listed on Nasdaq’s U.S. exchange to make public disclosures regarding the composition of their boards.
Under the SEC’s approval order, Nasdaq-listed companies, subject to certain exceptions, are encouraged to have at least two “diverse” directors, including at least one who self-identifies as female and at least one who self-identifies as either an “underrepresented minority or LGBTQ+,” terms of which are defined in the approval order.
