U.S. markets closed
  • S&P 500

    3,901.82
    +90.67 (+2.38%)
     
  • Dow 30

    31,535.51
    +603.14 (+1.95%)
     
  • Nasdaq

    13,588.83
    +396.48 (+3.01%)
     
  • Russell 2000

    2,275.32
    +74.27 (+3.37%)
     
  • Crude Oil

    60.31
    -0.33 (-0.54%)
     
  • Gold

    1,720.50
    -2.50 (-0.15%)
     
  • Silver

    26.57
    -0.11 (-0.40%)
     
  • EUR/USD

    1.2053
    -0.0035 (-0.29%)
     
  • 10-Yr Bond

    1.4460
    -0.0140 (-0.96%)
     
  • GBP/USD

    1.3927
    +0.0004 (+0.03%)
     
  • USD/JPY

    106.8000
    +0.2980 (+0.28%)
     
  • BTC-USD

    49,559.41
    +4,555.09 (+10.12%)
     
  • CMC Crypto 200

    982.63
    +54.40 (+5.86%)
     
  • FTSE 100

    6,588.53
    +105.10 (+1.62%)
     
  • Nikkei 225

    29,663.50
    +697.49 (+2.41%)
     

U.S. Senate Republicans ask SEC to reject Nasdaq diversity rules

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Ross Kerber
·1 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Ross Kerber

Feb 12 (Reuters) - Republican members of the U.S. Senate'sBanking Committee on Friday urged securities regulators toreject corporate diversity rules proposed by Nasdaq Inc.

In a letter to the head of the U.S. Securities and ExchangeCommission, the Republicans said the effort by the exchangeoperator to set boardroom diversity requirements for listedcompanies would interfere with boards' duties to theirshareholders, violate securities disclosure principles and couldimpose costs on companies.

"While we think America’s corporations benefit from boardsthat avoid groupthink and offer a diversity of perspectives andcommend firms that look to increase diversity among theirboards, we do not think NASDAQ should be using itsquasi-regulatory authority to impose social policies," statedthe letter, signed by Pat Toomey, the committee's topRepublican, and 11 other senators.

On Dec. 1 Nasdaq outlined rules that, if approved by theSEC, would require listed companies on its U.S. exchange todisclose boardroom diversity statistics and to have at least twodiverse directors, including one woman, or explain why they donot.

The proposal comes as part of a broader debate about a lackof diversity among top U.S. executives. Among the top 200companies in the S&P 500, African-Americans held only about 10%of board seats and Hispanic or Latino people held only 4% ofboard seats, a study last year found - representation belowtheir respective shares of the U.S. population of 13% and19%.

The lack of self-reported disclosure by corporate directorshas complicated efforts to increase those numbers, partly bymaking it difficult for investors to measure boardroomrepresentation.

Asked about the Republican's letter, Nasdaq spokesman JoeChristinat said that "Our proposal is a market-led solution thatshould simplify and standardize disclosure requirements to avoidthe type of regulatory overreach the critics fear."(Reporting by Ross Kerber; Editing by Steve Orlofsky)