Here's recent twist in the ongoing culture war here in the U.S. Nasdaq, the world's second largest stock exchange, recently asked the Securities and Exchange Commission for permission to require companies that list their shares on the exchange to either diversity their boards of directors or explain why that can't be done.
Specifically, Nasdaq, headed by Adena Friedman, a woman with a black belt in taekwondo, wants U.S. companies to have at least one woman director and another who is either a member of an underrepresented minority group or LGBTQ in terms of sexual orientation. Foreign companies listing on Nasdaq could get by with two women on their boards.
So it seems, being a white male -- an embattled species in today's culture wars -- isn't out of the question for one of those two diversity seats as long as he isn't heterosexual. Perish the thought! Except, of course, if one is talking about the requisite diversity seats on a foreign company that lists on Nasdaq where two woman would be needed. But perhaps a transgendered, formerly white male would qualify there.
Actually, most large U.S. companies, such as those that comprise the S&P 500 stock index, already have at least one woman on their boards. But Nasdaq reportedly believes about 75% of the over 3,200 companies that list their shares on the exchange would not be currently in compliance of the new rule, if approved.
According to the Wall Street Journal, the SEC is unlikely to grant Friedman's request as the agency is currently configured, but might if incoming President Joe Biden appoints new commissioners.
Now wouldn't it be great if corporate boards were something other than a rubber stamp for management, having been purchased as such by way of very generous compensation? Don't hold your breath even if Friedman's initiative is successful. Diversity first, good governance maybe later.
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