In anticipation of oral argument in Alliance for Fair Board Recruitment v. SEC in the U.S. Court of Appeals for the Fifth Circuit, Philanthropy Roundtable experts explain the dangers to philanthropy from the Nasdaq’s diversity quotas on listed companies’ boards.
Senior Director of Policy & Government Affairs Elizabeth McGuigan said:
“Irrational mandates on wealth creators will mean less resources for charitable giving and ultimately hurt the most vulnerable in our communities. “
“The NASDAQ disclosure regime is yet another example of a well-intentioned diversity mandate that poses significant negative consequences for companies and shareholders. Similar to California’s failed board quotas, these rules take away the ability to tap the best, unique individual for a role and instead will force discrimination based on limited, immutable characteristics.”
Adjunct Senior Fellow Patrice Onwuka said,
“The hyperfocus on gender and race to the exclusion of the experiences, backgrounds and viewpoints that contribute to each person’s individuality is counterproductive to the goal of true diversity. Tactics like board quotas are unfair and divisive.
“U.S. companies have increasingly embraced women on their boards undirected by government. Heavy-handed mandates and quotas are unconstitutional; Nasdaq’s disclosure rules should be invalidated too.”
Read more about the issues in the case here.