{"id":388167,"date":"2022-01-01T00:59:58","date_gmt":"2021-12-31T21:59:58","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nasdaqs-diversity-rule-rankles-republican-states\/"},"modified":"2022-01-01T00:59:58","modified_gmt":"2021-12-31T21:59:58","slug":"nasdaqs-diversity-rule-rankles-republican-states","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nasdaqs-diversity-rule-rankles-republican-states\/","title":{"rendered":"#Nasdaq&#8217;s diversity rule rankles Republican states"},"content":{"rendered":"<p>&#8220;<strong>#Nasdaq&#8217;s diversity rule rankles Republican states<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>A group of Republican-led states slammed Nasdaq\u2019s implementation of a diversity disclosure rule for corporate boards this week, arguing in a court filing that the requirement is illegal and unconstitutional.<\/p>\n<p>The states outlined their position in a legal brief supporting a lawsuit in the Fifth Circuit Court of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>eals, which seeks to block the rule. In <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.texasattorneygeneral.gov\/sites\/default\/files\/images\/executive-management\/NASDAQ%20SEC%20CA5%20State%20Amicus%20Br%20Filed.pdf\">the filing<\/a>, the GOP administrations argued that Nasdaq rule \u201cviolates both the Constitution and exceeds the SEC and Nasdaq\u2019s statutory authority.\u201d<\/p>\n<p>\u201cIt is unconscionable to see discrimination so blatantly put on display by requiring these companies to hire employees based solely on race, sex, and sexuality,\u201d Texas Attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Ken Paxton said <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.texasattorneygeneral.gov\/news\/releases\/paxton-joins-amicus-brief-opposing-sec-and-nasdaq-quotas-corporate-board-members-based-race-sex-and\">in a statement<\/a>.<\/p>\n<p>\u201cThe SEC\u2019s quotas violate the Constitution and federal civil rights laws by requiring that companies overlook a person\u2019s relevant qualifications under the guise of promoting diversity,\u201d he added.<\/p>\n<p>The rule requires companies listed on the exchange to publicly disclose diversity statistics for their boards of directors in a standardized format.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/nasdaq-logo.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Nasdaq logo\" class=\"wp-image-20676226\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/nasdaq-logo.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/nasdaq-logo.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/nasdaq-logo.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Nasdaq\u2019s diversity initiative mandates companies to have at least one female and one non-white corporate board member.<\/figcaption><figcaption><span class=\"credit\">Nasdaq<\/span><\/figcaption><\/figure>\n<p>The companies are urged to have at least two diverse directors, including one who self-identifies as female and one who self-identifies as an underrepresented minority or LGBTQ+ \u2014 and if not, they must explain why they did not <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/listingcenter.nasdaq.com\/assets\/Board%20Diversity%20Disclosure%20Five%20Things.pdf\">meet the recommended standard<\/a>.<\/p>\n<p>They will not face financial penalties if they do not comply with the diversity recommendation.<\/p>\n<p>The SEC approved Nasdaq\u2019s \u201cBoard Diversity Rule\u201d in August. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton2.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Texas Attorney General Ken Paxton, outside the Supreme Court of the United States on Monday, Nov. 1, 2021 in Washington, DC.\" class=\"wp-image-20676232\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton2.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton2.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton2.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Texas Attorney General Ken Paxton urged the Securities and Exchange Commission to reject Nasdaq\u2019s diversity disclosure rule.<\/figcaption><figcaption><span class=\"credit\">Kent Nishimura\/Los Angeles Times<\/span><\/figcaption><\/figure>\n<p>\u201cThese rules will allow investors to gain a better understanding of Nasdaq-listed companies\u2019 approach to board diversity, while ensuring that those companies have the flexibility to make decisions that best serve their shareholders,\u201d SEC Chair Gary Gensler said in a statement at the time.<\/p>\n<p>Nasdaq said the rule would promote board diversity and improve transparency about corporate governance. <\/p>\n<p>The filing from GOP states argued that the rule signaled \u201crace- and sex-based preferences\u201d which are \u201cparticularly crude and odious.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton3.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Texas Attorney General Ken Paxton speaks in front of the Supreme Court after arguing before the justices in favor of SB-8, the controversial Texas abortion law limiting procedures to the first six weeks of pregnancy, and empowering citizens to enforce the law against one another.\" class=\"wp-image-20676233\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton3.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton3.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton3.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Texas Attorney General Ken Paxton claims the Nasdaq diversity initiative ignores a \u201cperson\u2019s relevant qualifications\u201d for employment.<\/figcaption><figcaption><span class=\"credit\">Hannah Gaber-USA TODAY\/Sipa USA<\/span><\/figcaption><\/figure>\n<p>\u201cSEC\u2019s Quota Rule is one of the most blatant and sweeping violations of the Equal Protection Clause in decades,\u201d the brief said.<\/p>\n<p>Nasdaq and the SEC did not im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely return requests for comment.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>The brief was filed in support of ongoing legal challenges by the National Center for Public Policy Research, a conservative group, and the Alliance for Fair Board Recruitment.<\/p>\n<p>Nasdaq implemented the rule amid a growing nationwide push for diversity in corporate governance. In California, state law requires public companies located within the state to have at least one female director and a specific number of directors from underrepresented communities.<\/p>\n<p>Republicans have widely opposed the Nasdaq initiative. In February, Republican members of the Senate Banking Committee <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/article\/us-global-race-nasdaq\/u-s-senate-republicans-ask-sec-to-reject-nasdaq-diversity-rules-idUSKBN2AC29S\">urged the SEC<\/a> to reject the proposal.<\/p>\n<p>\u201cWhile we think America\u2019s corporations benefit from boards that avoid groupthink and offer a diversity of perspectives and commend firms that look to increase diversity among their boards, we do not think NASDAQ should be using its quasi-regulatory authority to impose social policies,\u201d the lawmakers said at the time.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/12\/31\/nasdaqs-diversity-rule-rankles-republican-states\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Nasdaq&#8217;s diversity rule rankles Republican states&#8221; A group of Republican-led states slammed Nasdaq\u2019s implementation of a diversity disclosure rule for corporate boards this week, arguing in a court filing that the requirement is illegal and unconstitutional. The states outlined their position in a legal brief supporting a lawsuit in the Fifth Circuit Court of Appeals,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":388168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/12\/texax-paxton-comp.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[74898,122872,60673,118979,48577,72332,28776,67844,72976,6474],"class_list":["post-388167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-sec","tag-12-31-21","tag-diversity","tag-gary-gensler","tag-gop","tag-nasdaq","tag-race","tag-republicans","tag-securities-and-exchange-commission","tag-texas"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=388167"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/388168"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=388167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=388167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=388167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}