African Americans were 13.4% and Hispanics 18.5% of the U.S. population, as of 2019. Asians were 5.9%. Women, 51% of the U.S population, held 23.5% of board seats at Russell 3000 companies last year, up from 18.5% in 2018, Equilar found.
Illinois State Senator Jacqueline Collins, an African American who co-sponsored the legislation, said that without name-by-name disclosures, it can be hard to determine whether companies are being frank when they declare they are diverse.
“So we want to know the specific participation,” Collins said.
Other plans do not go as far. Stock exchange operator Nasdaq Inc. is awaiting regulators’ approval to require companies it lists to report the number of directors by gender and in categories including Black or Hispanic and LGBTQ+, but not name-by-name. The exchange wants boards to have at least one woman and one minority or LGBTQ+ member, or explain why they do not.
“We don’t actually care about which person is which. We want to understand the boardroom as a whole,” said Wendy Cromwell, vice chair of the $1.1 trillion Boston money manager Wellington Management. It supports the Nasdaq plan especially for having companies provide diversity information in easily compared tables.
But Joe Shoen, the CEO of U-Haul’s parent company, Nasdaq-listed Amerco, objects.
May 11, 2021 at 06:36AM