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…
Category: diversity
Want More Diversity? Some Experts Say Reward C.E.O.s for It – The New York Times
harles A. Tribbett III, a consultant who advises large corporations about hiring and compensation, said many executives and board members were discussing whether to link pay to diversity goals, a change he endorsed. “I believe the time is now for that discussion to be turned into action,” said Mr. Tribbett, a managing director at Russell…
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…
Reporting of UK companies’ gender pay gaps tumbles in pandemic | Financial Times
We see absolutely no connection between the reporting requirement and the pressures of the pandemic. We do see a connection between dropping the reporting requirement and reductions in worker parity. The number of UK organisations reporting on their gender pay gap has halved during the past year, adding to concerns that the coronavirus pandemic could…
Scott Stringer Calls for Mandatory Diversity Effort in the Boardroom – The New York Times
New York comptroller Scott Stringer announced a new stage to his office’s Boardroom Accountability project: demanding that companies consider women and ethnic minorities in their searches for C.E.O.s and board members. The comptroller will ask directors of 56 companies to adopt a version of the N.F.L.’s Rooney Rule that requires consideration of diverse candidates for…
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…
Gender-Diversity Funds: How Strong Are Their Intentions? – Morningstar Blog
Morningstar examined the voting records of self-described “diversity” funds. We have some thoughts: 1. It is great that Morningstar is looking at and comparing the proxy voting records of the funds it covers. It should do more. 2. For example, it should look at the proxy voting records of all funds, whether they are explicitly…
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…
