Board Diversity

Overview of Major Board Diversity Requirements

In Brief: Board diversity, including diversity of gender and race, has emerged as a critical component of board composition. Investors see board diversification as a priority issue, and other stakeholders have called for enhanced board diversity. This FAQ offers an overview of final and pending federal and stock exchange requirements for diversity of board composition and related disclosures. In addition, this report provides information about final state requirements.

Q: What are the current requirements for diversity of board membership for US companies?

A: In the United States, as in many other countries, there is a growing recognition of the value of board diversity, and this recognition has led to various requirements that are intended to define board diversity and increase it. Public companies must follow disclosure requirements at the national level, and currently, the US Congress is considering additional measures. Meanwhile, there are pending Nasdaq stock exchange requirements involving board diversity. Furthermore, there are additional requirements or recommendations in some states due to state laws. Some state recommendations apply not only to public companies, but also to private companies and nonprofits.