Proposed Legislation Would Require Additional Diversity Disclosures

On February 6, 2019, the same day the SEC released its C&DIs on director diversity disclosures, the “Improving Corporate Governance Through Diversity Act of 2019” was introduced in both houses. The bill seeks to require public companies to disclose in their annual proxy statements the gender, race, ethnicity and veteran status of not only their directors and nominees, but also their senior executive officers, and to disclose whether the board has a policy or strategy to promote racial, ethnic and gender diversity among directors, nominees and executive officers. The bill has been referred to subcommittees in the House and the Senate for review, and the full text of the bill is available here. These regulatory and legislative developments come at a time when companies are increasingly disclosing the diversity of their directors voluntarily.