Companies listed on the Nasdaq may be kicked off for having all-white-male leadership. A new Nasdaq proposal would require that each company on the stock exchange have “at least two diverse directors.”
In order to meet this requirement, the 3,249 companies would have to show at least one female director and at least one underrepresented minority or LGBTQ+ director. If they don’t, they must have a good explanation for why not.
Currently, three out of four companies on the Nasdaq do not meet this requirement but they have some time to start going through resumes. Nasdaq plans to ask the SEC to pass this policy and that process will take a few weeks.