, have called for more corporate disclosure of diversity metrics, and Nasdaq invoked their past statements in its proposed rule.
One influential business group has already come out in favor of the rule. Tom Quaadman, a top official at the US Chamber of Commerce, said in a Tuesday statement that the proposal help accelerate the existing movement toward greater diversity at businesses. If approved by the SEC, the new board-diversity rule would be a "meaningful" and "great catalyst for change," Schmeltz said. But equally important is that boards are receptive to new viewpoints.
"The real test will be the comment period," the 30 days during which the public, including issuers, can raise questions and critique the proposal, said Dahiya, the former SEC branch chief. Nasdaq does lay out different phases according to the size of the company — for example, larger companies are given four years to find two diverse board members, and smaller companies get five.Stroock's Ko said that while the disclosure elements of the proposal likely won't generate much controversy, companies may have questions about its specific details.