Proposal requires Nasdaq listed companies to commit to new diversity standards
Harrisburg, PA - Pennsylvania Treasurer Joe Torsella today announced his support of a recent proposal by Nasdaq to the Securities and Exchange Commission (SEC) to increase corporate board diversity.
“After the voice of shareholders, nothing is more important than the voice of a company’s board of directors. I applaud Nasdaq’s commitment to increasing board diversity to help better align corporate board representation with that of the increasingly diverse shareholder and customer base. This improvement not only paves the way for corporate success and shareholder benefit, but opens the door for accomplished persons from underrepresented and diverse backgrounds to have a seat at the table of corporate leadership.”
Pennsylvania State Treasurer, Joe Torsella
In a letter submitted to the SEC, Torsella outlined his support of the Nasdaq proposal. The proposal requests SEC approval to add new requirements for listing on Nasdaq related to disclosure of board diversity and requires companies to have, or explain why they do not have, a minimum of two diverse directors seated on boards. The proposal offers flexibility, allowing companies to explain their diversity efforts and the ability to phase in changes over time.
Research shows that companies with diverse boards outperform companies that do not.