US stock exchange sets diversity rules for listed companies.
Written by crest887fm on August 7, 2021
America’s second largest stock exchange has said it will set binding gender and diversity targets for its listed companies.
Firms on the Nasdaq, which include tech giants such as Apple and Tesla, will have to have at least two diverse directors, or explain why they do not.
The directors should include one person who identifies as female and another as an underrepresented minority or LGBTQ+.
It follows complaints about the lack of diversity in corporate America.
According to a Nasdaq study last year, more than 75% of its listed companies would not have met its proposed targets.
The US Securities and Exchange Commission, which regulates financial markets, approved the plan on Friday, meaning it will be binding.