“Board Diversity Efforts: Factors for Companies to Consider Given Growing Scrutiny” from Jenner & Block identifies a number of legal risks associated with well-intentioned or responsive efforts to increase representation on the board by underrepresented groups and suggests ways in which companies may minimize the risks.
Guidance includes implementing tactics to expand opportunities for board service in lieu of quotas or numerical targets (e.g., increasing the size of the board, broadening the candidate pool); understanding and working within the confines of applicable state anti-discrimination laws; and defining diversity broadly to include the full range of skills, backgrounds, experiences, and attributes, rather than with reference to one or more protected characteristics.
The firm’s perspective on a Rooney Rule-like policy for board searches is particularly noteworthy given the pressures and demands companies face from some investors and advocacy groups to adopt such a policy.
See our report: “Glass Lewis Diversity & Skills Policy” and additional resources on our Board Diversity page.
This post first appeared in the weekly Society Alert!