Board Diversity Requirements: California, Nasdaq, and More

Corporate board diversity requirements are gaining attention. In December 2020, Nasdaq filed Proposed Rule 5605(f) with the U.S. Securities and Exchange Commission (SEC), which would require companies to satisfy diversity standards and disclose statistics related to board diversity. (In August 2021, the SEC approved the rule.) Just a few months prior to this proposal, in September 2020, Gov. Gavin Newsom signed into law AB 979, which mandates California-based companies to reach board-diversity thresholds by the end of 2021. What do these requirements typically do? How should the SEC consider these rules and proposals? How do they affect businesses, hiring practices, and the job of in-house attorneys in satisfying legal requirements, identifying clients, managing outside firms, and more? Featuring: Prof. Stephen M. Bainbridge, UCLA School of Law Prof. Lissa L. Broome, UNC School of Law Prof. Jesse M. Fried, Harvard Law School Prof. Cheryl L. Wade, St. John's University School of Law Moderator: Judge Patrick J. Bumatay, United States Court of Appeals, Ninth Circuit * * * * As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speaker.