Client Alert: Nasdaq Proposes New Listing Standards Relating to Board Diversity

On December 1, 2020, the Nasdaq Stock Market LLC (the “Nasdaq”) announced that it has filed a proposal with the U.S. Securities and Exchange Commission (the “SEC”) to adopt new listing rules relating to board diversity. The proposed rule comes in the wake of social movements focused on racial justice and gender equality. As a result of growing public sentiment around board diversity, boards of public companies have encountered increased scrutiny and pressure from investors and the public to effectuate diverse board representation. While many boards and their nominating committees have already taken steps to implement policies and to place heightened emphasis on board diversity, the proposed rule would accelerate this shift.