SEC Committee Fails to Reach Consensus on Board Diversity
The Securities and Exchange Commission’s (“SEC”) Advisory Committee on Small and Emerging Companies recently failed to agree on proposed changes to improve disclosures regarding board diversity. During its December 7 conference call, panel members held lengthy discussions about the diversity disclosure recommendations but could not reach a consensus to vote. Per Release No. 33-9089, Proxy Disclosure Enhancements, public companies must disclose in proxy statements if diversity plays a role in their director nomination process and how such considerations are made. The release, however, does not provide a clear definition of “diversity,” but gives companies the freedom to determine how the. Read More.