The pressure has resulted in a notable uptick in board diversity. The all-male board has disappeared from the S&P 500, and women hold a third of seats on a majority of those boards. Racial diversity has also seen a spike. In just the last year, the number of S&P 500 seats held by Black women has increased by more than 25%.
Unlike California’s board diversity law, Nasdaq’s rule isn’t a mandate and the exchange won’t levy fines on companies that don’t comply. Most listed companies would have as many as four years to meet the rule’s standard.
This article was provided by Bloomberg News.