The court is received a contrary judgment A proposal by the Nasdaq Market Index to impose diversity, equity, and inclusion standards on corporate boards.
The proposal, the first of its kind, would require the 3,000 companies listed on the index to have at least one woman, one minority, and one LGBTQ person on their boards. Ta.
“We respect the court's decision and do not intend to seek further review.”
On Wednesday, the Fifth Circuit Court of Appeals in New Orleans ruled against the Securities and Exchange Commission accepting a DEI proposal from Nasdaq.
“It is not unethical for a company to refuse to disclose information about the race, gender, or LGTBQ+ characteristics of its directors,” the ruling states. “We are unaware of any established rules or customs in securities trading that require companies to explain why their boards of directors are not as diverse in race, gender, and sexual orientation as Nasdaq would like.”
The Nasdaq index issued a statement defending the standards.
“We argue that this rule simplifies and standardizes disclosure requirements to the benefit of both companies and investors,” the statement reads. “Nevertheless, we respect the court's decision and do not intend to seek further review.”
The SEC said it is still considering its next steps in light of the ruling.
group of republican attorneys general asked a question The standards were laid out in a letter to Nasdaq CEO Adena Friedman in October.
“Given Nasdaq’s eagerness to impose quotas on companies, some of which are headquartered in our state, Nasdaq is committed to ensuring publicly traded companies comply with federal and state anti-discrimination laws. “We are interested in knowing what policies they have in place,” they wrote. letter.
Congressional Democrats released a letter in October urging companies to continue implementing DEI policies after pressure from conservative activists forced many companies to lower controversial standards. John Deere, Molson, Harley-Davidson, and Ford are among the companies that rejected DEI after initially bowing to left-wing demands.
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