Comment From Doug Chia on NASDAQ Board Diversity Proposal

Doug Chia‘s comment on the NASDAQ proposal for board diversity disclosure is well worth reading in full (see below). An excerpt; Nasdaq’s proposed rules are purely disclosure-based. The new rules would require listed companies to disclose information about the gender, ethnicity, and sexual orientation of their boards.1 This is disclosure about a board’s diversity or lack thereof. It would…

How Investors Are Addressing Racial Injustice – The New York Times

Socially responsible investing has been putting billions of dollars to work for social change for decades. In some cases, the strategy means avoiding certain sectors. Religious organizations, for instance, steer clear of alcohol, firearms, tobacco and other “sin” stocks. Some investors focus on companies that are already socially responsible to help them thrive, while starving…

New Illinois Law Requires Corporations to Report Diversity on Corporate Boards

A new Illinois law, Public Act 101-0589, signed by Governor J.B. Pritzker on August 27, 2019, aims to encourage diversity on the boards of directors of publicly held domestic and foreign corporations with principal executive offices in Illinois. The bill passed both houses of the General Assembly as House Bill 3394. P.A. 101-0589 requires that…

Report: Moving Toward Gender Balance in Private Equity and Venture Capital

  A new study from the IFC, Oliver Wyman, and Rock Creek investment management explores the link between financial returns and gender diversity; the lack of women in the industry; and steps needed to achieve gender balance. One of the key findings of the report is that private equity and venture capital funds with gender-balanced…

PWC on Corporate Boards: Cyber Threats, #Metoo, Diversity, and What Shareholders Want

PWC on Corporate Boards: Cyber Threats, #Metoo, Diversity, and What Shareholders Want PWC’s annual director survey is one of our most trusted resources on corporate governance from the perspective of the boardroom, and this year’s edition has some significant findings on issues like diversity, CEO pay, climate change, cybersecurity, and the gap between what board members…

Finally, Evidence That Diversity Improves Financial Performance

This is an exceptionally thoughtful and important study about the financial benefits of diversity. When managers and scholars talk about diversity’s impact on organizations and teams, they’re usually referring to the effects on collective accuracy and objectivity, analytical thinking, and innovativeness. On “harder” measures of financial performance, researchers have struggled to establish a causal relationship…