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SEC Chair Signals Nature of Forthcoming Board Diversity Disclosure Rulemaking

By Randi Morrison posted 06-28-2016 03:13 PM

  

In a speech before the International Corporate Governance Network yesterday, SEC Chair White signaled forthcoming rulemaking on board diversity disclosure that entails an amendment to Reg. S-K Item 407(c):

And, I can report today that the staff is preparing a recommendation to the Commission to propose amending the rule to require companies to include in their proxy statements more meaningful board diversity disclosures on their board members and nominees where that information is voluntarily self-reported by directors. Some may oppose even minimally more prescriptive diversity disclosure requirements. My view is that the SEC has a responsibility to ensure that our disclosure rules are serving their intended purpose of meaningfully informing investors. This rule does not and it should be changed. Our lens of board diversity disclosure needs to be re-focused in order to better serve and inform investors.

As previously reported, in January, Chair White reportedly instructed Staff to review existing company disclosures on board diversity and provide her with recommendations as to whether companies should be required to provide more specific information. And at the Society's annual Securities Law Committee meeting with Corp Fin Staff last month, Staff indicated that Chair White believed that the concerns expressed by investors about the inadequacy of the current disclosure rule were well-founded, but that "the devil is in the details."

See also this WSJ article.


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