{"id":617041,"date":"2021-08-06T20:35:31","date_gmt":"2021-08-07T00:35:31","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=617041"},"modified":"2021-08-06T20:35:40","modified_gmt":"2021-08-07T00:35:40","slug":"biden-administration-approves-rule-forcing-companies-to-hire-minority-lgbtq-executives-and-publicly-disclose-diversity","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-approves-rule-forcing-companies-to-hire-minority-lgbtq-executives-and-publicly-disclose-diversity\/","title":{"rendered":"Biden Administration Approves Rule Forcing Companies To Hire Minority, LGBTQ+ Executives And Publicly Disclose Diversity"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-administration-approves-rule-forcing-companies-to-hire-minority-lgbtq-executives-and-publicly-disclose-diversity%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=617041&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The top U.S. financial regulatory agency approved a rule that forces publicly-traded companies to reveal the diversity of their executive boardroom to investors.<\/p>\n<p>The Securities and Exchange Commission (SEC) voted in favor of the rule, which will apply to all companies traded on the Nasdaq stock exchange, <a href=\"https:\/\/www.sec.gov\/rules\/sro\/nasdaq\/2021\/34-92590.pdf\">according<\/a> to the text of the approval released Friday. The rule, first <a href=\"https:\/\/www.nasdaq.com\/press-release\/nasdaq-to-advance-diversity-through-new-proposed-listing-requirements-2020-12-01\">proposed<\/a> by Nasdaq in December, will also require companies to hire at least one female director and one either minority or LGBTQ+ director to their boards.<\/p>\n<p>Companies may be delisted from the exchange if they fail to comply with the new diversity requirements within four years. <a href=\"https:\/\/www.nasdaq.com\/market-activity\/stocks\/screener\">Several major corporations<\/a> including Apple, Google, Amazon, Tesla, JPMorgan Chase, Johnson &amp; Johnson, Disney, Nike and Walmart are traded on the Nasdaq.<\/p>\n<p>\u201cThese rules will allow investors to gain a better understanding of Nasdaq-listed companies\u2019 approach to board diversity, while ensuring that those companies have the flexibility to make decisions that best serve their shareholders,\u201d Biden-appointed <a href=\"https:\/\/dailycaller.com\/2021\/04\/14\/senate-gary-gensler-securities-and-exchange-commission-wall-street-regulator\/\">SEC Chairman Gary Gensler<\/a> said in a <a href=\"https:\/\/www.sec.gov\/news\/public-statement\/gensler-statement-nasdaq-proposal-disclosure-board-diversity-080621?utm_medium=email&amp;utm_source=govdelivery#_ftn1\" target=\"_blank\" rel=\"noopener noreferrer\">statement<\/a> after the vote. <strong><a href=\"https:\/\/dailycaller.com\/2021\/07\/19\/dow-jones-industrial-average-joe-biden-coronavirus\/\">(RELATED: Stock Market Plunges As Investors Fear Increasing Coronavirus Cases)<\/a><\/strong><\/p>\n<p>SEC Commissioners Allison Herren Lee and Caroline Crenshaw <a href=\"https:\/\/www.sec.gov\/news\/public-statement\/statement-nasdaq-diversity-080621?utm_medium=email&amp;utm_source=govdelivery\" target=\"_blank\" rel=\"noopener noreferrer\">applauded<\/a> the rule as a \u201cstep forward.\u201d But they added that there was still work to be done to improve corporate diversity and floated the possibility of a requirement for corporations to hire disabled executives.<\/p>\n<div id=\"attachment_7255326\" class=\"wp-caption alignnone\" readability=\"33\"><img decoding=\"async\" aria-describedby=\"caption-attachment-7255326\" loading=\"lazy\" class=\"size-full wp-image-7255326\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-scaled-1.jpg\" alt=\"SEC Chairman Gary Gensler testifies before the Senate Banking Committee in 2013. (Chip Somodevilla\/Getty Images)\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-scaled-1.jpg 2560w, https:\/\/cdn01.dailycaller.com\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-180x120.jpg 180w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-620x413-1.jpg 620w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-768x512-1.jpg 768w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-1536x1024-1.jpg 1536w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/08\/GettyImages-175048059-2048x1365-1.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<p id=\"caption-attachment-7255326\" class=\"wp-caption-text\">SEC Chairman Gary Gensler testifies before the Senate Banking Committee in 2013. (Chip Somodevilla\/Getty Images)<\/p>\n<\/div>\n<p>Commissioners Elad Roisman and Hester Peirce, <a href=\"https:\/\/www.sec.gov\/news\/public-statement\/roisman-board-diversity\">voted against<\/a>&nbsp;the proposal. While they both affirmed the importance of diversity, they argued that part of the rule was illegal and that the commission hadn\u2019t properly evaluated the proposal.<\/p>\n<p>\u201cThe objectives and disclosure requirements imposed by the Board Diversity Proposal encourage discrimination and effectively compel speech by both individuals[41] and issuers[42] in a way that offends protected Constitutional interests,\u201d Peirce <a href=\"https:\/\/www.sec.gov\/news\/public-statement\/peirce-nasdaq-diversity-statement-080621?utm_medium=email&amp;utm_source=govdelivery\" target=\"_blank\" rel=\"noopener noreferrer\">wrote<\/a> in her stinging rebuke of the proposal.<\/p>\n<p>However, Gensler said the rule was legal and in accordance with the <a href=\"https:\/\/www.investor.gov\/introduction-investing\/investing-basics\/role-sec\/laws-govern-securities-industry#secexact1934\">Securities Exchange Act of 1934<\/a>.<\/p>\n<p>\u201cBy defining diversity by race, gender, and sexual orientation, NASDAQ\u2019s mandate will inevitably pressure companies to subordinate crucial factors such as knowledge, experience, and expertise when selecting board members,\u201d <a href=\"https:\/\/dailycaller.com\/2021\/06\/30\/republican-senator-pat-toomey-banking-committee-federal-reserve-bank\/\">Banking Committee Ranking Member Pat Toomey<\/a> said in a statement Friday afternoon.<\/p>\n<p>\u201cThese prescriptive requirements may ultimately harm economic growth and investors by pressuring companies to select directors from a narrower pool of candidates and discouraging others from going public,\u201d he continued.<\/p>\n<p>Toomey added that Gensler was transforming the agency into a \u201claboratory for progressive social engineering.\u201d Banking Committee Republicans <a href=\"https:\/\/www.banking.senate.gov\/imo\/media\/doc\/NASDAQ_LETTER.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">wrote<\/a> to the SEC in February, urging it to reject the Nasdaq proposal.<\/p>\n<p>Similar diversity rules have been implemented in Europe over the last several years. In January, the German government <a href=\"https:\/\/dailycaller.com\/2021\/01\/06\/female-executive-quota-germany-companies\/\">passed a policy<\/a> requiring companies with more than 2,000 employees to hire at least one woman to serve on their executive board.<\/p>\n<p>Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact <a href=\"mailto:licensing@dailycallernewsfoundation.org\">licensing@dailycallernewsfoundation.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The top U.S. financial regulatory agency approved a rule that forces publicly-traded companies to reveal the diversity of their executive boardroom to investors.The Securities and Exchange Commission (SEC) voted in &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-617041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/617041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=617041"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/617041\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=617041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=617041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=617041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}