Twenty-two state attorneys general sent a letter to Nasdaq's CEO Thursday questioning the legality of requiring Nasdaq-listed companies to meet board diversity quotas.
attorney general I wrote “Most Nasdaq-listed companies have at least two diverse directors, including one who identifies as a woman and one who identifies as a woman,'' Nasdaq CEO Adena Friedman said. or explain why they don't have one,'' Nasdaq CEO Adena Friedman told Nasdaq CEO Adena Friedman about the proposed rule. Either you are an underrepresented minority or you are LGBTQ+. ”
The attorney general said that Nasdaq had submitted its “board assignment” to the Securities and Exchange Commission (SEC) after “well-founded objections that its policies violate anti-discrimination laws.” He pointed out that there was a need to reframe it as “aspirational and not coercive.”
Then, in a lawsuit in the Fifth Circuit, the exchange “reversed its course” and began referring to “illegal director quotas” as a “disclosure-based framework.”
Nasdaq spokesperson said The exchange said it “firmly believes in the rule of law.”
“The board disclosure framework has been developed in response to strong demands from both investors and companies, guided by pragmatism,” the spokesperson added.
The Attorney General wrote:
For more than three years, Nasdaq has defended a policy that looks like a quota and works like a quota, as something other than a quota. During this time, the U.S. Supreme Court ruled that race-based college admissions policies were unconstitutional, stating that “all citizens of the United States have absolute political and civil equality before the laws of their nation.” I reconfirmed it. The court clarified that “to eliminate racial discrimination means to eliminate all discrimination.”
Nevertheless, Nasdaq insists it continues on the wrong path. Nasdaq's defense of board quotas revolves around the argument that constitutional and statutory prohibitions on discrimination do not apply. Nasdaq's litigation strategy calls into question its commitment to complying with state and federal anti-discrimination laws. Given Nasdaq's eagerness to impose quotas on companies, some of them
We want to know what policies state-based Nasdaq has in place to ensure its publicly traded companies comply with federal and state anti-discrimination laws. [Emphasis added]
Will Hild, executive director of Consumers' Research, said in a written statement:
Nasdaq is clearly trying to circumvent federal and state discrimination prohibitions by asking the SEC to require companies to meet and disclose certain DEI quotas. This is not only illegal, but morally repugnant, especially for an organization that is supposed to serve as a platform for capital formation and allocation. Don't get me wrong, this rule is not only bad for workers, it's also bad for consumers, who lose out when companies focus on perpetrating egregious racism rather than improving their products. Fortunately, our state's attorney general is fighting back for voters and the rule of law by demanding that Nasdaq stop promoting a woke agenda and focus on its fiduciary responsibility. are. Consumer's Research will continue to focus on elected officials demanding that companies start servicing customers and stop servicing woke politicians. [Emphasis added]
In a recent opinion poll, Found Americans are increasingly shying away from companies with political leanings.
A Rasmussen poll released in July found that 48 percent of Americans believe DEI programs discriminate against white men, and an August Gallup poll found that Americans It has become clear that we are increasingly fed up with companies influencing the issue.
Sean Moran is a policy reporter at Breitbart News. Follow him on X @SeanMoran3.
