SEC Backs Nasdaq's Diversity Requirement

Back in December, the Nasdaq approved a diversity requirement for the boards of companies listed on that exchange. Every company must have at least one female board member and one from an underrepresented minority. If a company fails to do so, it must explain in writing why it does not. Now, the SEC has approved the new policy. The NYSE has an Advisory Board aimed at connecting diverse candidates with open board positions, although there is no specific diversity requirement.