Maloney Introduces Bill to Increase Corporate Board Diversity
Congresswoman Carolyn B. Maloney (D-NY), Chair of the House Committee on Financial Services Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, on Thursday introduced the Diversity in Corporate Leadership Act of 2019, to ensure that investors and the public have the information they need about the gender, racial, and ethnic diversity of corporate boards.
The bill requires public companies to disclose the gender, racial, and ethnic composition of their boards of directors every year in their proxy statements that they send to shareholders and investors and creates a Diversity Advisory Group to study the issue and recommend strategies and best practices to increase diversity on corporate boards.
“I strongly believe that by requiring companies to take a real look at the gender, racial, and ethnic makeup of their boards, we will create incentives and inspire change so that these boards better resemble the American public at large. By disclosing this information to investors, we are also empowering shareholders to support companies that embody their ideals and pull investment from those that don’t. Beyond making moral and common sense, more diversity also makes financial sense. Studies have repeatedly found that companies with more diverse leadership are better positioned to succeed. Why wouldn’t companies want to show off that they’re making smart financial decisions by moving towards more diversity and equality on their boards?”