Hundreds of companies trading on the Nasdaq stock exchange may be forced to add diverse directors for the first time or explain why they haven't, after U.S. regulators cleared the way for new listing requirements.
More than a third of companies trading on the Nasdaq lack a racially diverse director, and more than 1 in 10 have no female directors, according to an analysis by ISS Corporate Solutions of 2,284 companies where data were available. About 8% had neither a woman nor person of color on the board, the data showed. More than 3,000 stocks trade on the exchange, according to Nasdaq.
"The data shows clear evidence that there's a small-cap company gap when it comes to diversity on U.S. boards," Marija Kramer, head of ISS Corporate Solutions, said in an interview. "Listed companies, if they aren't already, should think about how they're going to recruit for more diverse directors."
A Nasdaq representative declined to comment on the outside data.