Nasdaq Board Diversity Data Reveal Lags in Compliance

The SEC-approved Nasdaq diversity rule’s future is uncertain, following oral arguments in the Fifth Circuit earlier this month in a case that challenges the agency’s authority to set the rules. At this moment, however, the rule—which requires more than 4,000 Nasdaq-listed companies to report directors’ demographics, hire a diverse board, and provide an explanation if they don’t—offers a unique glimpse into corporate board diversity data.

To determine how prevalent compliance with the Nasdaq Diversity Rule is, Bloomberg Law executed a large-scale data collection of board diversity matrices in 2023 proxy statements to identify the overall gender and racial …