TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:
The U.S. Chamber of Commerce supports H.R. 5084, the “Improving Corporate Governance through Diversity Act of 2019,” which the House is expected to vote on today.
The Chamber supports efforts to increase gender, racial, and ethnic diversity on corporate boards of directors, as diversity has become increasingly important to institutional investors, pension funds, and other stakeholders. According to PwC’s 2019 Annual Corporate Directors Survey, 94% of board directors surveyed indicated that a diverse board brings unique perspectives, 87% responded that diversity enhances board performance, and 84% responded that it improves relationships with investors. Additionally, 76% of directors agree that board diversity enhances the performance of the company.
The “Improving Corporate Governance through Diversity Act of 2019” would establish a model to organically boost diversity on boards through disclosure, rather than the counterproductive quota-driven strategies that some jurisdictions have attempted. The legislation would also establish an advisory group that would carry out a study and provide recommendations on private sector strategies to increase gender, racial and ethnic diversity among boards of directors.
Neil L. Bradley