The Latino Corporate Directors Association approves of a proposed rule change that would require Nasdaq-listed companies to have a diverse board of directors, or to at least explain why their board isn't diverse, the association said.
The rule change would require Nasdaq-listed companies to "have at least one director who self-identifies as female, and at least one director who self-identifies as Black or African American, Hispanic or Latinx, Asian, Native American or Alaska Native, Native Hawaiian or Pacific Islander, two or more races or ethnicities, or as LGBTQ+, or to explain why the company does not meet this requirement," the association said.
Latinos are "severely underrepresented among Fortune 500 and 100 boards and other public companies," as Latinos make up nearly 18 percent of the U.S. population, but less than 2 percent of board seats of the 1,000 largest Nasdaq-listed companies, the association said.
"We support these rule changes because for too long SEC rules have permitted inadequate disclosure of directors' diversity backgrounds, despite investor demand for this kind of information," Roel Campos, LCDA chair and former commissioner of the Securities and Exchange Commission, said in a press release.
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