Douglas E Harris, senior adviser at Promontory Financial Group, published an article in the Futures & Derivatives Law Report in May about how increasing diversity in senior management and boards is now a business imperative. Harris also addresses opposition to a proposed Nasdaq rule mandating board diversity for listed companies that is pending approval by the US Securities and Exchange Commission.
"Diversity, Equity and Inclusion programs, in one form or another, have existed for many years at large US companies, including those providing financial services. Unfortunately, other than with respect to gender, their success has generally been limited to increasing the number of individuals from underrepresented groups in junior-level positions or positions with limited upward mobility. There has been little change in the racial or sexual orientation diversity of senior management and even less in the diversity of corporate boards," Harris writes.
"This is no longer acceptable: Increasing the diversity of senior management and corporate boards is now a business and regulatory imperative. Financial services firms that fail to do so risk underperformance relative to those that do. They also face increased public and regulatory scrutiny and the potential loss of customers and market share due to the failure to manage their reputation risk."
The full article is published in Resources (on the right) with permission from Futures and Derivatives Law Report.
