SEC To Tighten Enforcement On Companies’ Accountability For The Glass Ceiling

Seyfarth Synopsis: SEC announced they are proposing a new rule to elicit more information about the diversity of corporate board members, maintaining that the amount of minority directors at the largest public companies has “stagnated” at 15%.

 

The Securities and Exchange Commission (SEC), long known as “the disclosure agency” has a strong impact on corporate governance. The SEC can require public companies to provide investors with specific information to inform their investment and voting decisions. Although the SEC cannot determine who will be on the corporate board, they can require disclosure about who is serving and why they were selected.

 

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