r/moderatepolitics • u/ShivasRightFoot • 26d ago

US appeals court rejects Nasdaq's diversity rules for company boards Culture War

https://apnews.com/article/nasdaq-sec-dei-diversity-board-a3b8803a646a62aeb2733bbd4603e670
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u/TeddysBigStick 25d ago

A stock exchange trying to influence who sits on a companys board of directors is completely unreasonable.

NYSE has always had rules for who is on a board. The current biggest story is that Tesla is, probably, in violation of one requiring that the majority of the board be independent for good governance reasons.

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u/Theron3206 25d ago

I would add the caveat to the original comment that the exchange should be able to set criteria for the competence of board members (and being impartial is part of being competent).

They should absolutely not be able to decide what indelible characteristics board members have, because that's entirely irrelevant to their competency to run a business.

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u/TeddysBigStick 25d ago

One of the main characteristics exchanges, and regulators for that matter look at is blood relations. By your rule, they would not be able to consider the fact that Musk stacks the board with his family.

As to your first point, the exchanges contention is that having differentview points is a requirement for competency via reduced business risk of groupthink. You can think they are wrong but they are in fact trying to create more effective governance.

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u/Sierren 24d ago

DEI doesn't reduce groupthink, it has people pack positions with other likeminded people, which leads to a rainbow of skin colors, but a black and white view of the world.