Nasdaq’s Proposal To Increase Diversity Shows Top-Notch Leadership & Should Be Replicated in the Asset Management Industry

For Immediate Release: August 9, 2021

Contact: Carolyn Clendenin, cclendenin@rabengroup.com, 347-869-7382

Nasdaq’s Proposal To Increase Diversity Shows Top-Notch Leadership, and Should Be Replicated in the Asset Management Industry, Says Diverse Asset Managers Initiative 

Washington, D.C. - The SEC just approved a proposal from the Nasdaq that would significantly increase diversity on corporate boards. To remain listed, all corporations would be required to meet certain targets for the gender and ethnic diversity of their boards or provide a written justification for why they aren’t doing so. Currently, three-quarters of Nasdaq’s listed companies don’t meet the minimum thresholds. 

Robert Raben, founder of the Diverse Asset Managers Initiative, issued the following statement in response:

“Nasdaq’s diversity proposal offers an exemplary example of how financial powerhouses can create profound, far-reaching change. Nasdaq recognized its power to influence thousands of predominantly white- and male-led corporations, and developed standards to reverse that diversity dearth. This is how leaders lead.

“This move offers a blueprint for how the asset management industry should move forward. Overwhelmingly white and male, the sector is in desperate need of a diversity infusion. If the SEC required asset managers to report their diversity figures and take concrete steps to change, that would fundamentally reshape the industry -- unlocking massive sources of wealth for women and people of color nationwide. It’s time for the SEC to make it happen.”

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The Diverse Asset Managers Initiative is an effort to increase the absolute number of, and assets under management by, diverse-owned asset management firms for institutional investors, with specific focus on public, corporate, faith and labor union pension funds as well as foundation and university endowments.